With the holiday season approaching in the Chinese market, long steel demand has slackened during the week ending September 20. As of September 20, the average long steel prices in the main Chinese regions are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
6.5 mm |
Q235 |
4,400 |
652 |
-17 |
|
20 mm |
HRB 335 |
4,290 |
636 |
-18 |
|
20 mm |
HRB 400 |
4,433 |
657 |
-24 |
In China's three main steel markets, i.e., Shanghai, Beijing and Guangzhou, the prices of Q235 grade 6.5 mm size high speed wire rod now respectively stand at RMB 4,310/mt ($639/mt), RMB 4,420/mt ($655/mt) and RMB 4,470/mt ($662/mt), with HRB 335 grade 20 mm rebar prices respectively at RMB 4,170/mt ($618/mt), RMB 4,270/mt ($633/mt) and RMB 4,430/mt ($670/mt). Meanwhile, HRB 400 grade 20 mm rebar is priced at RMB 4,300/mt ($637/mt), RMB 4,370/mt ($647/mt) and RMB 4,630/mt ($686/mt) in the above respective markets. All prices are ex-mill and include 17 percent VAT.
In the first half of the past week, significant decreases were observed in the sales prices of long steel products in the Chinese domestic market. Towards the end of the week under review, the decreasing trend slowed down somewhat, yet with no increased interest being shown by buyers. The comparatively flat trend seen in the last half of the week was mainly attributable to the quiet domestic steel futures market.
With rumors circulating that some small mills were to halt their production in Tangshan, Hebei Province, domestic high speed wire rod producers made a trial increase in their offers. However, following the upward adjustment, market activity has been very quiet. In addition, with many traders under some pressure to bring in cash, prices in China's long steel market are not expected to increase.