August 09, 2008

Chinese rebar domestic prices start downward correction

It is reported that construction steel market, which has been flourishing in China since February has seen an evident decrease and the market is likely to start its correction.

On Shanghai market, HRB335 20mm rebar is being offered at CNY 5380 per tonne to CNY 5390 per tonne down CNY 70 per tonne to CNY 80 per tonne from peak levels. HRB400 rebar prices also went down by CNY 70 per tonne to CNY 5550 per tonne to CNY 5580 per tonne.

Mysteel forecasts that “Taking Shanghai price for HRB335 20mm as benchmark, it is going to see further downward adjustment unless it could exceed CNY 5500 per tonne. However, the strength above CNY 4900 per tonne would hint that any drop is merely adjustment.”