Construction steel sales in China rebound

Spot sales of construction steel in China, including rebar, again exceeded the 200,000-tonne threshold on March 28, or for the fourth time this month, according to Mysteel data. It also marked the first time that daily transaction volume exceeded the half-month threshold.

On Tuesday, the country's daily trade in structural steel, including wire rod and bars in coils, among the 237 Mysteel-controlled trading houses across the country increased by 11.6%, or 20,903 t/d, to 200,563 t/d .

Sources say yesterday's improvement in steel sales was partly due to increased productivity at construction sites across China as rainy weather came to an end in many parts of the country, in tandem with support for speculative trading activity throughout the day.

The near-term outlook for the Chinese steel market is also showing signs of stabilizing, as the top-traded rebar contract for May on the Shanghai Futures Exchange rose 31 yuan per tonne ($/t), or 0.8%, for the second straight day, compared to Monday. settlement price at the close of the daily trading session on March 28 at the level of 4,136 yuan/t.

On the same day, the domestic price of 20mm HRB400E rebar in China also reversed its nine-day decline, rising by 6 yuan/t/d to 4,267 yuan/t including 13% VAT, according to Mysteel.

Meanwhile, Australian Mysteel SEADEX 62% fines rose $2.25/t/d to $123.9/t CFR Qingdao as of March 28.