China's rebar market continued to experience price declines on October 16, as both spot and derivatives markets weakened. Market sentiment across the domestic ferrous sector turned cautious with the fading impact of earlier economic stimulus measures.
The national price of HRB400E 20mm diameter rebar dropped by Yuan 34 (USD 5) per ton from the previous day, settling at Yuan 3,847 (USD 540) per ton, including 13% VAT. Rebar futures also softened, with the most-traded January contract on the Shanghai Futures Exchange declining by 1.15%, closing at Yuan 3,447 (USD 484) per ton.
Several steel mills responded to the market downturn by reducing ex-works prices for construction steel by Yuan 20-60 (USD 3-8) per ton. Despite these reductions, demand remained weak, with most buyers purchasing only to meet immediate needs. Daily spot trading volumes for construction steel, including rebar, wire rod, and bar-in-coil, remained low, showing only a slight uptick from the previous day.
In the semi-finished steel market, re-rollers showed reluctance to accept higher prices for sourcing materials. The price of Q235 150mm square billet in North China's Tangshan fell by Yuan 20 (USD 3) per ton, settling at Yuan 3,190 (USD 448) per ton EXW, marking the third consecutive day of decline.
The continued drop in both rebar and billet prices reflects ongoing challenges in China's ferrous market, with demand remaining subdued despite price cuts.
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