In late September (September 21-30) this year, the average price in China of 16-25 mm HRB 400 rebar rose by 0.1 percent to RMB 3,813.7/mt ($539.2/mt), compared to prices in mid-September (September 11-20), as announced by China’s National Bureau of Statistics. In the given period, prices of angles gained 0.1 percent, while prices of wire rod, medium plate and hot rolled coil (HRC) and seamless pipes lost 0.1 percent, 0.2 percent, 0.5 percent and 0.6 percent respectively, compared to mid-September.
Ahead of the week-long National Day holiday (October 1-7), downstream users have built up some stock for rebar, providing certain support to its prices, while replenishments for other products were not so active as expected, weakening their prices. Meanwhile, iron ore prices in the given period (September 21-30) have seen a downtrend. Though market players have expected a more bullish sentiment after the holiday, the performance after the holiday was not as good as expected. However, steel prices will likely gain some support as Tangshan issued production restrictions for October, which will bolster steel market.