Construction steel prices in China fell due to fundamental factors

Structural steel prices in China have been declining since the country's National Day celebrations (October 1-7), mainly as demand lacked significant growth momentum and cost support from raw materials weakened. In addition, market sentiment was dampened by the resurgence of COVID-19 cases across the country, market sources said.

As of October 17, China's national price of 20mm HRB400E rebar, which is a weather vane of China's steel market dynamics, recorded a five-day decline of 101 yuan per tonne ($14 per tonne) overall from October 11 to nearly a month's worth according to Mysteel estimates. is 4,100 yuan per ton including 13% VAT. The price has also been down 70 yuan per tonne since September 30, the last business day before the holiday break.

Daily trade in construction steel, including rebar, wire rod and coiled bars, among 237 trading houses surveyed by Mysteel averaged 162,663 tons per day from October 8 to 17, well below the threshold of 200,000 tons per day which is considered normal for this time of year when steel consumption is usually steady. And the volume was also 13.3% lower than the corresponding period last year.

In terms of commodity prices, Mysteel SEADEX 62% Australian Fines hovered at a relatively low level of $93.25/t Qingdao CFR as of October 17, or down $2.15/t from September 30. .

On the other hand, more cases of COVID-19 have been confirmed across the country after people enjoyed a week-long vacation while traveling. On October 17, China reported 208 new confirmed cases and 587 asymptomatic cases, according to the National Health Commission.