Steel prices in China, including rebar and hot rolled coil (HRC), recovered for the week as a whole from 23 to 27 August after a sharp decline a week earlier, despite renewed price decline from 26 August, in part due to higher Prices and price stability for raw materials, especially coke, and spot sales of steel on the domestic market also rose moderately over the week.
The daily trading volume of construction steel, which includes rebar, wire rod and wire rod, among 237 Chinese traders, increased 13,480 tonnes per day, or 7.5% over the week, to an average of 193,590 tonnes per day on 23 August. 27, although volumes fluctuated last week: tonnage was lower by mid-week and higher by the weekend.
The best-traded rebar contract in January 2022 on the Shanghai Futures Exchange (SHFE) rose 198 yuan per tonne from its settlement price on Aug. 20, ending the day trading session on Aug. 27 at 5222 yuan per tonne, and futures the price versus the spot price of rebar in Shanghai changed to a contango of 22 yuan per tonne at 40 yuan per tonne in the previous week.
The most traded HRC contract in January 2022 on the SHFE recovered 105 yuan per tonne from the calculated price on 20 August, to close at 5495 yuan per tonne when the day trading session ended on 27 August and backwardation to the HRC spot price in Shanghai narrowed to RMB 165 /t from 192 RMB /t a week earlier.