Posted on 19 Oct 2022
China's prices of construction steel have been losing ground after the country's National Day holiday (over October 1-7), largely as demand lacked major upward momentum while cost support from the raw material side waned. Moreover, market sentiment has been subdued due to the resurgence of COVID-19 cases across the country, market sources shared.
As of October 17, China's national price of HRB400E 20mm dia rebar, a weathervane of Chinese steel-market dynamics, logged a five-day decline of Yuan 101/tonne ($14/t) in total since October 11 to near a one-month low of Yuan 4,100/t including the 13% VAT, according to Mysteel's assessment. The price was also lower by Yuan 70/t from September 30, the last working day before the holiday break.
The daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil among 237 trading houses under Mysteel's survey averaged 162,663 tonnes/day over October 8-17 -- far below the threshold of 200,000 t/d regarded as normal for this time of year when steel consumption is usually robust. And the volume was also 13.3% lower than the corresponding period last year.
As for raw material prices, Mysteel SEADEX 62% Australian Fines hovered at a relatively low level of $93.25/dmt CFR Qingdao as of October 17, or slipping by $2.15/dmt from that on September 30.
On the other hand, more COVID-19 cases had been confirmed nationwide after people enjoyed the weeklong holiday by traveling. On October 17, China reported 208 new confirmed cases and 587 asymptomatic cases, according to the National Health Commission.
Source:Mysteel Global
