Steel prices in China are growing

Steel prices in China, including rebar and hot rolled metal (HRC) in the spot and futures markets, increased from August 30 to September 3, as steel production declined in most regions, while domestic demand showed signs of continued growth, albeit at a higher level, but at a slow pace.

Rebar : As of September 3, the national price of 20mm HRB400E rebar in China rose 87 RMB /t (US $ 13.5 /t) in the second week to RMB 5,357 /t, including 13% VAT.

From August 30 to September 3, the daily trading volume of construction steel, which includes rebar, wire rod and wire rod, among 237 Chinese traders also increased in the second week, increasing by an average of 23,932 tons per day, or 12.4% over the week. total 217,522 tons /day, according to Mysteel tracking data.

As of September 3, the most traded rebar contract in January 2022 on the Shanghai Futures Exchange (SHFE) closed the afternoon trading session at 5,408 yuan per tonne, up 260 yuan per tonne in its second week from the estimated price on August 27 … Contango versus the spot price of rebar in Shanghai thus increased to 68 yuan per tonne from 22 yuan per tonne in the previous week.

Billet : The price of a Q235 square billet of 150mm in Tangshan, Hebei Province in North China jumped 110 RMB in the second week to RMB 5,060 per ton EXW including VAT last Friday, and stocks of billets fell significantly with the increase in production. among the local steel haulers.

HRC : As of September 3, the national price of China is 235 sq. China’s 33 cities fell for the third straight week, dropping 98,000 tonnes in a week to 2.85 million tonnes as of September 2.

The most traded SHFE contract on HRC in January 2022 rose in its second week as of September 3, to close at 5,784 yuan a tonne at the close of the afternoon trading session, or substantially up 353 yuan per tonne from the August 27 and its backwardation. Compared to the Shanghai HRC spot price, the price fell sharply to RMB 16 per tonne from RMB 165 per tonne in the previous week.

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