Factors pump up Chinese reo bar price
China steel reo bar contract 1605 and 1610 unprecedentedly soared 40% and 30% respectively since December 2015. And by April 6, 2016 the price of reo bar Class IV, 16 mm was CNY2,280/mt. It is the 20th day increase in succession with a growth proportion of 7.41%.
A market insider think there are several factors leading to recent price hiking of reo bar. As for raw material, iron ore prices increased at early April, and Australian 62%PB iron ore’s average price was CNY416.89/mt on April 6, up 2.15% from CNY400/mt at the end of March.
Besides, declining inventory also pumps up the prices. By April 6, China’s total inventory of reo bar
was at amount of 5.5174 million tons, the fourth week at downtrend,
dropt 1.5994 million tons from last month. And the total inventory of
China major steel producers was 13.7552 million tons, declined 0.8688
million tons.
Furthermore, the warmer real state market in China’s first line and second line cities brought more investment. During January to February, China total investment for real state development was up to 905.2 billion China’s yuan, gained 3% yoy.
By April 6, China steel industry operation rate was about 77.49% which is stable for four weeks, while reo bar stock kept reducing during the same period.The total inventory was 5.5174 million tons, but that in the same period last year was 7.3 million tons.
Steel industry is getting warm in spot market. Recently, 15 steel producers and 46 manufacturers made deals of 1.2358 million tons of steel products, including 59 kinds of products and at a total amount of 4.9 billion China’s yuan, in an business activity held by the Ministry of industry and information of Hebei province.
Post Your Ad Here
Comments