Snapshot: Yonggang, Zenith Steel cut contract volume further in mid-Apr

SHANGHAI, Apr 9 (SMM) – Yonggang planned to cut 45% of its rebar long-term contracts with domestic buyers during April 11-20, compared with a 30% cut during April 1-10, SMM learned.

Its wire, rod and bar contracts would be cut 35% during April 11-20, compared with the 30% cut in the previous 10-day period.

The contracted volumes were discussed and agreed between steel mills and their buyers in the previous year. A 20% cut in actual execution is often seen.

For Yonggang, the sharp cut is due to an increase in its exports, SMM understood.

Separately, Zenith Steel planned to cut 30% of its rebar domestic contracts during April 11-20, same as the level seen during April 1-10. Its wire, rod, and bar contracts would be but 10% during April 11-20, compared with a 20% cut in the previous 10-day period.

Shagang, on the other hand, planned to keep its rebar contracted volume unchanged.

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