China’s hot-rolled bar and coil traded in a tight range, but both were close to high, as peak seasonal demand and China’s production cuts at mills pushed prices of these two commodities. higher.
Stocks of major steel products, including construction materials and coils used in the manufacturing sector, last week compared with the previous week, fell 2.8% to 10.71 million tonnes.
Meanwhile, weekly production of the metal stood at 10.15 million tonnes as of September 9, down 7% year-on-year.
“Affected by the Covid-19 epidemic and floods in July and August, (construction) demand is likely to increase during the peak season,” CITIC Futures analysts said.
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Peak season demand and production cuts at mills make China’s prices of hot-rolled steel bars and coils soar.
The price of rebar on the Shanghai Futures Exchange, for January delivery, increased 0.4% to 5,696 CNY (equivalent to 883.29 USD)/ton.
Hot rolled coil futures, used in cars and home appliances, fell 0.6% to CNY5,871 a tonne.
Stainless steel prices traded on the Shanghai exchange, for October delivery, fell 1.1% to 19,420 CNY/ton. Prices of raw materials for steel production on the Dalian Commodity Exchange fell.
Iron ore prices fell 1.0% to CNY 725/ton, while spot iron ore 62% traded in the last session of last week was unchanged at $131.5/ton.
Coke prices fell 2.7% to CNY2,872/ton and coking coal fell 2.9% to CNY3,559.
CITIC Futures said coking coal will be supported in the short term as limited supply and a ban on coal imports from Australia lasting for several years also affect coal prices. Besides, coke prices may also be affected by the cut in cast iron production.
Source: VITIC/Reuters
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