With the weather getting warmer, improved demand has been seen in the Chinese construction steel market. During the past week (March 30-April 5), China's domestic producers have shown eagerness to take advantage of the current active purchasing situation and have pushed up their prices continuously.
Product name |
Specification |
Category |
Average price (RMB/mt) |
Price($/mt) |
Weekly change ($/mt) |
6.5 mm |
Q235 |
4,440 |
651 |
+7 |
|
20 mm |
HRB 335 |
4,373 |
641 |
+13 |
|
20 mm |
HRB 400 |
4,490 |
658 |
+11 |
In China's three main steel markets, i.e., Shanghai, Beijing and Guangzhou, the prices of Q235 grade 6.5 mm size high speed wire rod now respectively stand at RMB 4,350/mt ($638/mt), RMB 4,490/mt ($658/mt) and RMB 4,480/mt ($657/mt), with HRB 335 grade 20 mm rebar prices respectively at RMB 4,140/mt ($607/mt), RMB 4,570/mt ($670/mt) and RMB 4,410/mt ($647/mt). Meanwhile, HRB 400 grade 20 mm rebar is priced at RMB 4,180/mt ($613/mt), RMB 4,640/mt ($680/mt) and RMB 4,650/mt ($682/mt) in the above respective markets. All prices are ex-mill and include 17 percent VAT.
Since the beginning of March, most domestic mills have raised their sales prices for wire rods and rebars, thus driving up prices in the downstream sectors.
With a gradual improvement seen on the demand side, the pressure from inventory levels has been alleviated, while traders have become more positive on the prospects for the future market. During the week in question, material offered at relatively low prices has met a fairly strong response from demand in the market.
Following the Japanese steelmakers' recent agreement on iron ore prices, major South Korean steel producer POSCO is reported to have accepted an 83-86 percent increase for iron ore prices in April-June with Brazilian mining giant Vale.