The rising momentum of Chinese finished steel prices has lost some steam from Monday. Showing signs of weakness, the HRB400 20mm dia rebar price declined for two successive working days by a total of Yuan 17/tonne ($2.6/t) to reach Yuan 4,123/t as of December 15. The Q235 4.75mm HRC price also softened for two days by Yuan 24/t in total to Yuan 4,470/t by the same day, though it was still some Yuan 347/t higher than the rebar price. Both prices include the 13% VAT.
The downward correction in steel prices this week followed the overall uptrend seen last week when prices of raw materials including iron ore surged. Market sources believe that HRC enjoys firmer demand than rebar as global manufacturing is in rapid recovery from the pandemic – Chinese manufacturing sectors too, such as autos – but that steel supply worldwide cannot satisfy the demand near term.
