30 Jun : Chinese rebar sales in June down by 35pct

It is reported that steel price continued down and became closer and closer to steel mills costs in June. At the same time sales fell by 35%YoY and both social stocks and steel mills stocks are still very high. Steel product may flood domestic steel market as traders' export costs rise owing to the removal of tax rebates.

As per report, transactions among traders also decreased in June, stock consumption slowed down. As steel price became closer and closer to steel mills' costs, steel mills compensate fewer for traders' losses. Besides, traders are not willing to cut price any more. Along with the falling steel price internationally, orders slide. The high stock volume will no doubt become an obstacle to steel price.

Under such circumstances, raw material price also shifted to a sliding track. At present, coke price falls by CNY 100 per tonne MoM. Spot price for iron ore fine from India lingers at USD 150 per tonne.

Analysts think that July is a traditional dead season for construction steel price. Though there is slim room for further decline in steel price, it is still lack of motive and opportunity for the bounce. It is expected that price for high grade rebar will be at CNY 3700 per tonne to CNY 3900 per tonne.

(from MySteel)

To contact MNN staff for this story: Kylin at +86-13228199166 or metalnewsnet@gmail.com

Article: 30 Jun : Chinese rebar sales in June down by 35pct
Keywords: Home - Nickel - Nickel Ore
Channel: Metal - News
Posted: 2010-6-30 9:05:23 by Metalnewsnet
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30 Jun : Chinese rebar sales in June down by 35pct

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