In mid-October (October 11-20) this year, the average price in China of 16-25 mm HRB 400 rebar decreased by 1.3 percent to RMB 3,801.2/mt ($537.7/mt), compared to prices in early October (October 1-10), as announced by China’s National Bureau of Statistics. In the given period, prices of wire rod, medium plate, hot rolled coil (HRC), seamless steel pipe and angles lost 1.2 percent, 0.4 percent, 1.0 percent, 0.5 percent and 0.4 percent respectively, compared to early October.
In mid-October, rebar futures have decreased from RMB 3,415/mt ($483/mt) on October 10 to RMB 3,310 ($468/mt) on October 18, down by 3.1 percent, pointing to the cautious sentiment prevailing in the steel market. Meanwhile, major Chinese steelmaker Shagang and Hesteel have cut their ex-works prices for long products, exerting a negative impact on steel prices. However, since construction has started on many infrastructure projects in several provinces in China, demand for steel will likely improve and bolster steel prices. Market players think steel prices in China will bottom up in the fourth quarter of the year.