Chinese spot steel prices started to fall on Monday April 16 on oversupply concerns and ex-works price cuts by some steel mills.
Prices in major markets were either flat or lower, as end-users became cautious about purchases.
In Beijing, spot prices for rebar were 4,250-4410 yuan ($671-696) per tonne, down by 20-30 yuan from last Friday. Rebar prices in Shanghai were unchanged at 4,060-4,300 yuan per tonne.
“Some traders and stockists lowered their prices after they realised buyers were holding back,” a trader in Shanghai told Metal Bulletin.
Further price drops are expected following the production boost by steelmakers that pushed China’s daily crude steel output
to 1.98 million tonnes in March.
Price cuts by several longs producers have also affected market sentiment.
Four steel mills announced price cuts of 20-50 yuan per tonne for rebar and wire rod, a trading source said.
Meanwhile, Wuhan Steel said on Monday that it will raise HRC prices by 40 yuan per tonne for May shipments. Prices for hot dipped galvanized coil and plate will go up by 60 yuan and 50 yuan respectively.
Prices of cold rolled coil, tin plate, electro-galvanized and prepainted galvanized coil will be unchanged.
October rebar contracts on the Shanghai Futures Exchange settled at 4,346 yuan per tonne on Monday, down by 37 yuan from last Friday.
Raw materials markets in China remained stable on April 16.
Spot iron ore prices stood unchanged from last Friday’s at $150-151 per tonne cfr. In Tangshan, 150mm-diameter billet remained at 3,800 yuan per tonne.