China's rebar market has seen prices recover as demand steadily picks up, Kallanish notes.
In Shanghai on Friday afternoon, 20mm HRB400 rebar was trading at CNY 3,450-3,470/tonne ($489-492/t), up CNY 85/t from the previous week. On the Shanghai Futures Exchange meanwhile, the rebar contract for May 2020 closed at CNY 3,483/t, CNY 45/t lower from Thursday but CNY 42/t higher week-on-week.
Spot market traders say that, as more and more companies and construction sites resume work, steel demand is increasing. Although prices and transaction levels fluctuated last week, the trend of positive expectations for the domestic market has not changed. Demand in northern China is now also expanding, resulting in a reduction in new arrivals to Shanghai last week and a further easing in supply-side pressure.
Steel mills have also taken the opportunity to lift their list prices. Zenith, a major steel producer in eastern China, announced a CNY 100-150/t increase in long product prices for late March. Traders’ confidence has recovered, and the market expects that the subsequent recovery of more demand will raise market prices further.