Chemical News
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Chinese domestic steel falls despite central bank's real-estate move
http://www.chemnet.com Apr 01,2015 Platts
In Beijing, 18-25 mm diameter rebar dipped Yuan 10 ($2) Tuesday to be assessed at Yuan 2,455-2,465/mt ex-stock on an actual weight basis and including 17% value-added tax. Q235 hot rolled coil 5.5mm thick in Shanghai meanwhile fell Yuan 15/mt to be assessed at Yuan 2,480-2,520/mt ex-stock including VAT.
Market participants said measures on the real-estate sector had been expected for some time, but that their direct impact on steel was more tenuous.
"If we see an uptick in construction steel prices over time, then there might be some reaction from HRC," said a Shanghai-based trader.
Traders also pointed out that steel futures fell, even as shares in Chinese real-estate developers rallied. On the Shanghai Futures Exchange, the most active October rebar contract closed 0.8% lower at Yuan 2,431/mt, and the May HRC contract last traded 0.4% lower at Yuan 2,478/mt.
Iron ore prices, which have hit fresh record lows for the fourth straight day Tuesday, also dented steel market sentiment, with the 62% Fe Iron Ore Index assessed at $51.25/dry mt CFR North China, down $0.75/dmt on the day.
"April may see seasonal demand support steel, and sales may be better then," a Beijing-based trader said.
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