Beijing construction steel prices down on Wednesday

Beijing construction steel prices down on Wednesday

Activity in China’s three major construction steel markets was far from brisk on Wednesday (September 14), leading to price declines in Beijing in particular. The average price of HRB335 rebar in Beijing, Shanghai and Guangzhou market was RMB 3’217/ton ($397), down RMB 20/ton ($2) than that of last trading day; HRB400 rebar was RMB 3’353/ton ($413), a decline of RMB 10/ton ($1); Q235 high-speed wire rod was RMB 3’277/ton ($404), down RMB 13/ton ($2). For details, please see the following: Beijing Construction steel material prices continued on their downward path in the Beijing market. The prevailing market price of 20mm diameter HRB335 rebar was down RMB 50/ton ($6) to RMB 3’150/ton ($388); for 20mm HRB400 rebar, down RMB 20/ton ($2) to RMB 3’300/ton ($407); for 6.5mm Q235 high-speed wire rod, down RMB 40/ton ($5) to RMB 3’150/ton ($388). HRB335 rebar prices decreased by large amount, and the price quotations of traders were uniform. According to traders, few transactions were concluded and the market was not brisk. There was sufficient HRB335 rebar as inventories are currently high. HRB400 rebar prices exhibited a slight down turn. Some specifications were in short supply, especially 14mm and 32mm diameter. The price difference between 14mm, 32mm and 12mm, 28mm diameter rebar was RMB 50/ton ($6). Transactions of HRB400 rebar were at a level that could be considered normal. Demand for 25mm diameter rebar increased due to better transaction situation. The prices of Q235 wire rod headed downward, showing a similar price trend to that of HRB335 rebar. The price of high-speed wire rod was equal to that of large diameter HRB335 rebar. Traders held a pessimistic view towards the future of the market. They indicated that the decreasing prices failed to boost the transactions. The market was not brisk as a whole. Inventory slightly increased to 300’000 tons, equaling the normal level. Shanghai In the Shanghai market, rebar prices slightly decreased as few transactions were concluded. For second-rate brand names, the prevailing market price for 20mm diameter HRB335 rebar was down RMB 20/ton ($2) to RMB 3’100/ton ($382); for 20mm HRB400 rebar, down RMB 10/ton ($1) to RMB 3’330/ton ($411); for 6.5mm Q235 high-speed wire rod, unchanged at RMB 3’320/ton ($409). Upon opening, some traders decreased their HRB335 rebar prices. In the afternoon, the actual deal prices further decreased. It was reported that 20,000 tons of rebar produced by Beitai arrived in Shanghai one week ago. HRB335 rebar was traded at RMB 3’070-3’080/ton ($379-380). HRB400 rebar prices declined slightly. A batch of Ma Steel’s 25mm diameter product arrived in Shanghai. On the wire rod side, prices were stable. Price quotations of traders were strong. Guangzhou Prices in the Guangzhou market were stable as transaction volume left something to be desired. For second-rate brand names, the prevailing market price of 20mm HRB335 rebar was RMB 3’380/ton ($418); 20mm HRB400 rebar, RMB 3’430/ton ($423); Q235 high-speed wire rod, RMB3’360/ton ($414). Leading traders’ price quotations of HRB335 rebar were unchanged. The current short supply of some specifications was likely a factor that halted the price decline. Even though some traders saw transactions pick up in the last two days, they still did not reach a normal level. Not many products arrived in Guangzhou from elsewhere in China. 25mm diameter product was in short supply. Tangshan Steel will not sell their HRB335 rebar to other cities. Leading traders lack Tangshan Steel’s products. Some traders indicated that Beitai’s products to Guangzhou were at RMB 3’200/ton ($395), leaving room for a certain profit margin. HRB400 rebar prices were stable. 6.5mm high-speed wire rod was in short supply, especially for products produced by Pingxiang Steel, Shaoguan Steel, Tangshan Steel and Xiangtan Steel. However, there was sufficient 10mm product. The current price difference between 6.5mm and 10mm diameter products reached RMB50/ton ($6). Traders in Guangzhou are keeping a close eye on the market trends in Shanghai and Beijing. SteelOrbis Shanghai Office