China construction steel daily recap – September 21

China construction steel daily recap – September 21

Prices in China’s main construction steel markets were down on Wednesday. In Shanghai, prices decreased by RMB 10-20/ton ($1-2). Prices of large diameter HRB335 rebar in Beijing remained stable, while those of small diameter rebar declined. For other specifications, prices fell slightly. In Guangzhou, prices dropped somewhat, with the exception of high-speed wire rod. Few transactions were concluded in these three markets. Compared to Tuesday, the average of prices of 20mm diameter HRB335 rebar in the Beijing, Shanghai and Guangzhou markets slid RMB $7/ton ($1) to RMB 3’143/ton ($388). HRB400 rebar was down RMB 16/ ton ($2) at RMB 3’297/ton ($407), while Q235 high-speed wire rod lost RMB 10/ton to finish at RMB 3’220/ton ($397). For details, please see the following: Shanghai Prices of construction steel declined in Shanghai as very few transactions were concluded. For second-rate brand names, the prevailing market price for 20mm diameter HRB335 rebar was down RMB 10/ton ($1) at RMB 3’060/ton ($377); 20mm diameter HRB400 rebar was down RMB 20/ton ($2) at RMB 3’290/ton ($406); and 6.5mm Q235 high-speed wire rod was down RMB 10/ton ($1) at RMB 3’280/ton ($404). While traders kept their price quotations for HRB335 rebar at the same level as Tuesday, the actual deal price showed a minor decrease. For third-rate brand names, their deal prices were RMB 3’040/ton ($375) with a good transaction situation. Ma Steel initiated their price reduction for HRB400 rebar. Other brand names followed suit. High-speed wire rod prices saw a slight decline, while other wire rod prices remained steady. Beijing Q235 wire rod prices continued to plummet in Beijing, and small diameter HRB400 rebar prices were slashed. The prevailing market price of 20mm diameter HRB335 rebar held steady at RMB 3’080/ton ($380); 20mm diameter HRB400 rebar was down RMB 10/ton ($1) at RMB 3’240/ton ($400); and 6.5mm Q235 high-speed wire rod slid RMB 20/ton ($2) to RMB 3’080/ton ($380). Traders’ price quotations for large diameter HRB335 rebar were at RMB 3’100/ton ($382); however, the actual prices were at RMB 3’080/ton ($380). Some traders sold their products even lower. HRB400 rebar witnessed a slight price decline. Prices of small diameter rebar showed a larger range of decrease, while those of large diameter rebar decreased by a small amount. It was reported that inventory of small diameter rebar was somewhat high. The price gap between 12-32mm diameter rebar was small. Q235 wire rod prices were still weak. Prices of Q235 wire rod have decreased by RMB 20/ton ($2) on daily basis since Monday (September 19). The price difference between wire rod and high-speed wire rod was small. Prices were weak due to softened demand. It was reported that prices of large-scale traders were firm. Small-scale traders sold their products at a low price. According to some market players, there was no improvement in the tight capital situation and thus it was difficult for them to collect their payment. Guangzhou Rebar and wire rod prices witnessed a slight decline in Guangzhou, while those of high-speed wire rod kept stable. Activity in the Guangzhou market was not brisk. Newly arrived products will lead to an increase in inventories. Compared to Tuesday, the prevailing market price of second-rate brand name 20mm diameter HRB335 rebar was down RMB 10/ton ($1) at 3’290/ton ($406); 20mm diameter HRB400 rebar was down RMB 20/ton ($2) at RMB 3’360/ton ($414); and Q235 high-speed wire rod was at RMB 3’300/ton ($407). HRB335 rebar prices were stable in the morning. Price quotations of traders remained constant. During the day, the actual deal price saw a minor decrease. HRB400 rebar prices were weak. Upon opening, wire rod prices decreased by RMB30/ton ($4) and then remained unchanged. High-speed wire rod prices were equal to those of Tuesday. According to Ma Steel’s leading traders, there will be a batch of rebar arriving in Guangzhou. Batches of Tangshan Steel’s products have already begun arriving in Guangzhou. Inventory is likely to increase since there is little activity in the market.