End-user demand for rebar in China’s domestic market decreased on Monday November 8 on adverse weather, though prices picked up on rising futures.
Eastern China (Shanghai): 4,900-4,980 yuan ($766-778) per tonne, up by 20-70 yuan per tonne
Large parts of China have been experiencing a cold wave since last Friday, causing snow in the northern region and strong winds in the eastern region’s coastal areas. This weighed on construction activity.
The resultant weakening of end-user demand lowered rebar sales, but sellers raised their offers in response to rebar futures gains made last Friday night, sources said.
The most-traded January rebar futures contract on the Shanghai Futures Exchange rose to a high of 4,397 yuan per tonne last Friday night, up by 150 yuan per tonne from a closing price of 4,247 yuan per tonne at 3pm that day.
“Rebar mills’ profits have dropped to around 50 yuan per tonne, a very low level, so they will try to push prices upward to secure margins of at least 200 yuan per tonne, which are more reasonable,” an industry analyst said.
As at 3pm, billet was being traded at 4,900 yuan per tonne including value-added tax in Tangshan, unchanged from last Friday.
Shanghai Futures Exchange
The most-traded January rebar futures contract closed at 4,312 yuan per tonne on Monday, up by 65 yuan per tonne from last Friday
(MetalBulletin, 08 Nov, 2021)