Experts claim that rumors of Covid threats in China do not have a significant impact on the rebar market. However, a multidirectional trend with a minimum price change indicates the inconsistency in the market.
While the price for wire rod remain relatively stable, the downward trend for billet continues.
The billet gradually retraced to 3490 CNY/MT EXW (488 USD/MT including VAT - 424 USD/MT excluding VAT), showing a minimal decrease of only 10 CNY/MT (1.4 USD/MT).
Wire rod is offered at 4120 CNY/MT EXW (576 USD/MT including VAT - 501 USD/MT excluding VAT) so far; however, local prices are 6-7 USD/MT lower due to the depreciation of the yuan against the dollar.
Producer offers in northern China for rebar reached 3650 CNY/MT EXW (510 USD/MT including VAT - USD 444/MT excluding VAT), resulting in a minimum increase of CNY 30/MT (4.19 USD/MT).
Southern states showed a slight decrease of 20 CNY/MT (or 2.79 USD/MT), with prices retreating to 3720 CNY/MT EXW (520 USD/MT including VAT - 452 USD/MT excluding VAT).
After this week's relative price stability, many experts doubt that the market will be able to recapture the mid-November gain. However, the increase in demand due to the decrease in stocks may reactivate the uptrend in the coming weeks.
Although the steel market is not yet ready to show strong growth rates, it is an undeniable fact that Covid is gradually losing its influence on the market.
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