SHANGHAI, Apr. 19 (SMM) - Shasteel will likely lower rebar ex-works prices in late April by RMB 30-50/mt, with RMB 3,670-3,690/mt for second grade rebar, and prices for third grade rebar up RMB 100/mt.
Reasons: Second grade rebar prices in Hangzhou were RMB 3,580/mt today, down RMB 110/mt from the highest in early April, with ex-works price of RMB 3,550/mt, and losses between RMB 50-80/mt, including discounts.
As steel plants were selling billet to generate cash, billet prices dropped by RMB 80/mt this week. Besides, ore prices also began to sink, which will also cause rebar price to fall.
The cancel of urbanization meeting and tightening credit loans for steel traders caused negative market sentiment.
Shasteel intimated distributors that they can advance contracts for late April this week, while some third-tier steel plants were also aggressively selling goods, showing steel plants are faced with inventory pressure. But stocks markets and rebar futures prices closed with gains today, which will help reduce price declines. Should there is any positive financial factors, spot prices are likely to rebound temporarily, but will fall again due to imbalanced supply and demand. In general, Shasteel will not lower ex-works prices significantly in late April.