SHANGHAI, Dec 13 (SMM) – Spot prices of rebar in Hangzhou fell back to closing prices on Tuesday December 11, at 3,830 yuan/mt, after it increased to a high of 3,860 yuan/mt on December 12. Pessimism across buyers and weak trades capped upward momentum in spot prices.
In Hangzhou, demand from construction sites slowed as Chinese New Year neared. This, together with planned resumption at several large steel mills in east China this month, is likely to grow steel inventories in the short run.
As of December 12, rebar inventories in Hangzhou increased 17,000 mt from a week ago, to stand at 181,000 mt, reflecting signs of oversupply.
In Guangzhou, expectations of gradual arrivals of steel from northern markets grew market pessimism and this lowered spot prices by 30 yuan/mt from Tuesday, to 4,220 yuan/mt on Wednesday December 12. SMM forests that the prices will face continued pressure from higher supplies in the short term.