Chinese steelmakers hiked spot rebar quotes following substantial rally in futures

SHANGHAI, Apr 14 (SMM) – Nearly 20 major steelmakers in China have raised their quotes for spot construction steel sales following a substantial rally in futures that began in early April.

The increases in quotes, varying from 10 to 50 yuan/mt, did not mute trades, SMM research found.

The most active rebar contract on the Shanghai Futures Exchange for October hit a nearly four-week high of 3,425 yuan/mt in early morning trade on Tuesday. This was up about 10% from a trough of 3,103 yuan/mt plumbed on April 2.

Demand recovery and stimulus efforts by Chinese authorities are believed to contribute to the recent rally in rebar futures.

The physical market, however, saw a less significant bounce, as recovering output from electric arc furnace mills, switches from flats to longs at blast furnace mills and record-high inventories, limited stream in spot prices.