Chinese rebar price slumps to 7.5-month low

On November 10, China's national price of HRB400E 20mm dia rebar under Mysteel's assessment slumped to a new low since March 26 after having declined for for the eighth working day by Yuan 160/tonne ($25/t) to Yuan 4,790/t including the 13% VAT, though spot sales of construction steel including rebar recovered from declines in the prior two days, up 37.2% on day, partly due to the attractiveness of the much lower prices.

China's longs prices were unable to gain any support from semis at all, as the Q235 150mm square billet price in North China's Tangshan fell to the lowest since March 18 one day earlier on November 9, reaching Yuan 4,450/t EXW including the VAT and stayed at the level by Wednesday, according to Mysteel's assessment.

On Wednesday, spot trading volume of construction steel also including wire rod and bar-in-coil among China's 237 traders surveyed by Mysteel surged 49,332 tonnes/day on day to 181,797 t/d.

The spread of rebar futures and physical prices had been correcting, also encouraging some trading as the prices may stabilize after recent deep falls, Mysteel Global noted.

On November 10, the most-traded January 2022 rebar contract on the Shanghai Futures Exchange declined for the second day but more moderately by Yuan 51/t or 1.2% from the settlement price of November 9 to close the daytime trading session at Yuan 4,246/t.

Written by Villanelle Xia, xiayi@mysteel.com

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