Spot rebar prices rose on continued supply tightness

SHANGHAI, Nov 14 (SMM) – Spot prices of construction steel rebar rose this week, lifted by a shortage of some specifications in south China as large volumes of steel deliveries from the north remained en route.

Unfavourable weather slowed cargo uploading in the north, which together with limited availability of vessels, extended the shipment period. 

SMM assessments indicated that, as of November 13, prices of spot rebar at major steel mills in south China have climbed 200-250 yuan/mt from mid-October. This compared to a rise of around 70 yuan/mt in north and east China, and triggered the north-to-south steel delivery. 

SMM expects arrivals of cargos from the north to pressure rebar prices in late November. 

Data from the National Bureau of Statistics (NBS) showed that prices of rebar with diameters of 16-25 mm rose 1.3%, or 50.3 yuan/mt from late-October and averaged 3,801.2 yuan/mt during the first ten days of November, based on a survey covering 24 provinces or cities in China. 

SMM assessed the national average prices of spot rebar, with a diameter of 18-25mm, at 3,953.7 yuan/mt as of November 13, up from 3,841.1 yuan/mt at the end of October.