Rebar and hot-rolled coil prices in China rose on supply concerns after the top steel-producing city of Tangshan temporarily closed.
The outbreak of the recent Covid-19 wave has spread to 28 provinces across China. Tangshan City, a key steel production hub, announced emergency control measures this week after the number of cases increased significantly.
On the Shanghai trading floor, the price of steel bar delivered in May 2022, increased 1% to 4,983 CNY (equivalent to 154.21 USD)/ton.
Hot rolled coil price of steel used in automobiles and home appliances increased 0.4% to CNY 5,189/ton.
Stainless steel prices on the Shanghai exchange increased 2.8% to 20,415 CNY / ton, the price of raw material nickel was stable after a strong increase of 3.7% in the early session.
Steelmaking components on the Dalian Commodity Exchange were mixed after falling more than 3%, with iron ore prices up 0.4% to CNY 823 a tonne. The price of iron ore with 62%Fe iron content decreased by 3 USD to 147 USD/ton.
Iron ore prices are facing new pressure as the number of Covid-19 infections in China increases. The blockade will only have a short-term impact on bulk commodity prices before steel demand is expected to recover next month, strategists said.
Huatai Futures said that, due to traffic disruption, most steel mills face shortage of raw materials … and potentially even have to stop production.
On the Dalian bourse, coke prices fell 1.6% to CNY2,940/ton and coking coal futures fell 0.7% to CNY3,545/ton.
According to data released by the World Steel Association on Tuesday (March 22), China’s “Zero Covid-19” strategy has contributed to the country’s crude steel output down 10% year-on-year. last year down to 75 million tons.
This caused global output to fall for the second consecutive month to 142.7 million tonnes, and down 5.7% from a year earlier.
T&G International Joint Stock Company
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