China's Rebar Price Dips, Sales Ease

China's national average benchmark price for HRB 400 20mm dia rebar price continued its downtrend for the eighth straight day, having lost another Yuan 7/tonne ($1/t) on day to Yuan 3,896/t including 13% VAT as of December 20, and spot sales of long steel subsided further.

Last Friday, China's spot sales of rebar, wire rod and bar-in-coil among 237 long steel traders under Mysteel's daily survey reversed down to 160,455 tonnes/day, or down 8.6% on day.

Rebar prices even in the Southern regions of China, where demand has been little affected in winter, have declined substantially with the consistent inflow of steel products from North China to South because of the price spread.

The rebar price of the same specifications in Guangzhou of Guangdong in South China, for example, fell nonstop since late November to Yuan 4,250/t on December 20 from Yuan 4,990/t on November 26, both including the 13% VAT.

On the same day, though, the price spread between Guangzhou and Beijing remained attractive for steel mills in North China to move cargoes southbound, as on December 20, the HRB 400 20mm dia rebar price in Beijing was at Yuan 3,600/t including 13% VAT, or having recovered by Yuan 10/t on day.

The Tangshan Q235 150mm square billet price, another indicator of the Chinese market sentiment in North China, stayed unchanged from the previous day at Yuan 3,340/t EXW and including 13% VAT, or having the roughly normal price difference against the Beijing rebar price.

This article has been published under article exchange agreement between Mysteel Global and SteelMint.