SteelOrbis Shanghai
Driven by the increased ex-factory prices of the mills in southern China, domestic market prices saw a continuous rise over the past week. Meanwhile, the markets in eastern and northern China showed stable movement on the whole, with inventory levels almost equal week on week.
On January 5, the average price of 20 mm diameter HRB 335
rebar in the three major Chinese markets - Shanghai, Beijing and Guangzhou - was up RMB 20/mt ($3) week on week to RMB 3,207/mt ($411), while that of 20 mm diameter HRB 400
rebar was up RMB 13/mt ($2) to RMB 3,343/mt ($429). Meanwhile, the average price of 6.5 mm Q235 high speed
wire rod was up RMB 14/mt ($2) to RMB 3,257/mt ($418).
During the New Year holiday period, very few northern supplies flowed into the southern
China market, and long products inventory in the Guangzhou market saw a further decrease. Thus, the mills in the southern region such as Shaoguan Steel, Guangzhou Steel, Liuzhou Steel and others, all hiked ex-factory prices after the holidays, thereby boosting up market prices in Guangzhou and neighboring areas.
With regards to eastern
China, the market continued its stable movement, without any change in prices and
trading volume. Local market inventory climbed slightly, but not enough to generate any pressure on the market.
The northern
China market showed a slight weak indication. Some medium and small distributors in Beijing reduced their quotations last Friday, causing a certain impact on the market. This fall in quotations is mainly due to the big cumulative price increase over recent times and the good profit level currently obtained in result. Distributors are not optimistic about future demand and are eager to sell their products. Nevertheless, market inventory is not at a high level and the market continues to see a normal
trading performance.
Influenced by the increased ex-factory prices of the steel mills, export quotations also went up a little. Some steel mills indicated a hike in their quotations to South
Korea. As a result, the CFR price of 16-25 mm HRB400 to this destination is about $392-395/mt, up $10/mt compared with early December. It seems that export orders have not been affected by the price increase.
Generally speaking, there is not much momentum for a continued increase in
China's long products prices, and so the market is expected to move steadily down in the coming days.
According to the latest figures released by the
China Iron & Steel Association (CISA), Chinese
rebar exports totaled 524,377 mt in November, up 241.36 percent year on year and up 126,327 mt or 31.74 percent compared with October. Cumulative Jan-Nov exports totaled 3.198560 million mt, up 101.26 percent year on year. On the other hand, imports in November totaled 4,651 mt, down 37.53 percent year on year and down 1,325 mt or 22.17 percent month on month. Cumulative
rebar imports for Jan-Nov totaled 58,823 mt, down 12.95 percent year on year. The
rebar market supply for the month of November amounted to 6.7611 million mt, up 8.54 percent year on year.
China's
wire rod exports totaled 502,768 mt in November, up 109 percent year on year and up 50,380 mt or 11.14 percent month on month. Cumulative exports in the Jan-Nov period totaled 4.699391 million mt, up 71.12 percent year on year. Meanwhile,
China's
wire rod imports for November totaled 51,193 mt, up 12.02 percent year on year and down 4,391 mt or 7.9 percent month on month. Imports for Jan-Nov totaled 564,671 mt, down 0.29 percent year on year. The
wire rod market supply in November amounted to 5.668 million mt, up 10.06 percent year on year.