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China’s spot steel prices were mixed on Wednesday May 30 with prices of some steel products rebounding while those of others fell.
In Beijing, rebar was traded at 4,080-4,170 yuan ($644-658) per tonne, up 10 yuan per tonne from Tuesday. In Shanghai, the product was traded at 3,860-4,040 yuan per tonne, unchanged since last Friday.
Hot rolled coil prices also gained, with the commercial 4.5-12mm-thick product rising 10-20 yuan to 4,150-4,170 and 4,140-4,160 yuan per tonne in Beijing and Shanghai respectively.
But prices of cold rolled coil and steel plate fell 20-50 yuan per tonne at the same time. CRC changed hands at 4,750-4,910 yuan per tonne while those of plate at 4,080-4,170 yuan per tonne.
“China’s state-run Xinhua news agency said last night that there are no plans for a large stimulus,” an analyst in Shanghai said.
The news discouraged market participants and led some to cut their prices for more sales, he added.
It will be some time before the steel market starts to benefit from the smaller-sized stimulus packages announced in mid-May, traders said.
Concerns remain over whether steelmakers will cut output further to relieve the supply glut, which is critical for a real change in the market.
The futures market gained a little today, with the October rebar contract on the Shanghai Futures Exchange settling at 4,097 yuan per tonne, up 5 yuan per tonne from Tuesday’s price.
The semi-finished market saw the price of billet in Tangshan go up 30 yuan to 3,540 yuan per tonne.
The raw materials market rebounded on Wednesday, with prices of 63.5% Fe iron ore rising $1 to $138-139 per tonne cfr.