Posted on 16 Jun 2021
Chinese construction rebar and hot-rolled coils futures fell on Tuesday on weak downstream demand, while raw material prices gained, led by coke, following the announcement of output control in Shandong province.
Apparent consumption of the five main steel products compiled by Mysteel consultancy fell 4.7% to 10.97 million tonnes last week from a week earlier, data showed.
“The off-peak season has gradually arrived, consumption declined significantly due to high-temperature and rains in the southern area, (steel) destocking is coming to an end,” analysts with Chang An Futures wrote in a note.
The most-traded steel rebar on the Shanghai Futures Exchange , for October delivery, closed down 1.5% to 5,168 yuan ($807.44) a tonne, as trading resumed after a public holiday in China on Monday.
Hot-rolled coils futures, used in the manufacturing sector, declined 1.9% to 5,436 yuan per tonne.
Shanghai stainless steel futures, for July delivery, inched up 0.5% to 16,390 yuan a tonne.
Prices for steelmaking ingredients, however, recovered from losses in early session despite lower utilisation rates at mills weighted.
Capacity utilisation rates of blast furnaces at 163 mills across China fell to 80.69% as of June 11, the lowest since mid-May, according to Mysteel.
Benchmark iron ore futures on the Dalian Commodity Exchange , for September delivery, edged up 0.9% at 1,226 yuan a tonne.
Spot prices of iron ore with 62% iron content for delivery to China SH-CCN-IRNOR62 increased $7 to $220 on Tuesday.
Dalian coking coal futures rose 1.3% to 1,956 yuan per tonne.
Coke futures jumped 2.3% to 2,725 yuan a tonne.
China’s Shandong province has vowed to limit its coke output to 32 million tonnes in 2021 and cut its coking capacity to 33 million tonnes from 46 million tonnes.
Source:Reuters
