SHANGHAI, Sep 12 (SMM) – China's spot rebar markets in Beijing, Wuhan, and Changsha have reported a shortage of some specifications as of Wednesday September 11, SMM surveyed, as environmental restrictions and lower margins weighed on supplies.
Traffic controls on vehicles entering Beijing affected restocking by traders. This, coupled with the ongoing production curbs in the nearby steelmaking hubs of Tangshan and Handan, caused the short supply. But this may unlikely provide strong support to spot prices of rebar as the environmental curbs ahead of the National Day in October also dented downstream demand.
Spot prices of rebar in Beijing have rebounded some 110 yuan/mt from late-August, SMM assessed as of Wednesday.
Rebar prices in Changsha of south-central China’s Hunan province have climbed about 320 yuan/mt from the end of August, SMM assessment showed. SMM expects further upward momentum in local prices as pent-up demand continues to release after the rainy season and as supply tightness may sustain in the near term.
Despite shortage amid output cuts, suspension in Wuhan, local prices of rebar will remain under pressure as demand faces further curtailment on the convening of the 7th CISM World Games in the city during October 18-27.
SMM assessed that the average prices of rebar across Chinese markets eased 5.9 yuan/mt to stand at 3,837 yuan/mt on Wednesday September 11, after they climbed some 45 yuan/mt during September 9-10.