UTC+8 ( BJT)

Infograph: Has China’s Rebar Price Peaked?

ABSTRACT

China’s domestic steel prices have been strengthening and hovering at the year’s peaks so far this week, as overall demand has stayed rather robust especially in November, usually a low steel consumption month in China with winter enveloping North China.

Steelmaking raw materials prices have been rather resilient too, which, in turn, have been supportive to the Chinese steel prices. 

As of November 17, the price of the HRB400 20mm dia rebar in China, was assessed at Yuan 4,124/tonne ($629/t), returning to the pre-pandemic level or reaching a new high since November 29 2019, and that of the Q235 150mm square billet in North China’s Tangshan, persisted at its 15-month high of Yuan 3,580/t EXW as well, both including the VAT.

Despite the apparent solid performance, some Chinese steel traders have been rather upfront about their concern, commenting that the recent price increment may be the swan song for this year, and a sharp price fall may be brewing, as many parts of China are or will be hit with sharp temperature drops, and demand may fall accordingly.