It is reported that with the supply and demand stalemate in the market, Shanghai construction steel price appears stable and is hardly to have a breakthrough in short term.
Rebar
12mm
HRB 335
Location - Shanghai
CUR 11-Dec 14-Dec 15-Dec 16-Dec 17-Dec 18-Dec
CNY 3600 3620 3630 3630 3630 3630
USD 527 530 531 531 531 531
USD: CNY = 6.83
Rebar
20mm
HRB 400
Location - Shanghai
CUR 11-Dec 14-Dec 15-Dec 16-Dec 17-Dec 18-Dec
CNY 3700 3720 3730 3730 3730 3730
USD 541 544 546 546 546 546
USD: CNY = 6.83
Rebar
20mm
HRB 335
Location - Shanghai
CUR 11-Dec 14-Dec 15-Dec 16-Dec 17-Dec 18-Dec
CNY 3520 3540 3550 3550 3550 3550
USD 515 518 519 519 519 519
USD: CNY = 6.83
The stalemate could be propelled due to following factors
1. Unclear trend in future market, there is strong wait and see attitude in downstream demand and the demand of traders is also weak.
2. Inventory continues to be on upward trend in Shanghai. Cargo storage vessels started to increase last week and even had to queue in some terminals for discharge. Despite the rising trend of total inventory, specific specifications supply is still tight and with price up which could play a certain role in supporting the price of other resources.
3. Inversion of EXW prices and market prices in most Chinese local markets. And this seems to make dealers winter storage program a dilemma embarrassment.
4, Chinese production capacity release is still high with Chinese steel production grew by more than 32% and wire production by more than 46% in November compared to the same period the year before.
Although some steel traders hold wait and see attitude and operate cautiously under the pressure of supply and demand stalemate weak demand and Inversion of ex-factory price and market price, most traders are still optimistic about the future market and cheap sell-off phenomenon is relatively rare which is also constitute a certain degree of support.
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(Sourced from www. steelprices-china.com)
Monday, December 21, 2009
Shanghai construction steel market enters a stalemate
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