According to market sources, US hot-rolled steel coil price moved up further on Tuesday because domestic mills continued to push through a recently announced price increase.
As you may have known, US mills last week began informing customers that they would be raising base prices for all sheet products by $30/st, effective immediately.
Chinese steel futures rose for a third straight session on Wednesday, supported by tighter supply and expectations that China’s consumption would recover when output cuts are lifted after winter. Coking coal futures surged nearly 7% to a two-month peak.
Gaining for a second straight day on Tuesday, Chinese rebar futures jumped 2% on hopes that steel demand in this country, the world's top consumer, would bounce back sharply when production cuts are lifted after winter.
Chinese steel price and iron ore price shed early losses on Monday, while there were plentiful stockpiles of the steelmaking raw material in China.
Construction-used rebar on the Shanghai Futures Exchange edged up 1.1 per cent to end at 3,696 RMB per tonne, after falling as low as 3,627 RMB earlier in the session.
Chinese steel rebar futures dropped for a third day on Friday as steel demand in this country was expected to slow over winter and as the economy cooled.
Steelmakers are still making bumper profits of more than 1,000 RMB per tonne despite falls in steel price, analysts said.
US cold-rolled steel coil price slumped further on Wednesday, according to market sources. The daily CRC assessment was calculated at $782.75/st, down $9.75 from Tuesday.
However, mills were looking to stop the backslide with the announcement of a $30/st price increase on sheet products.
Chinese rebar futures edged down 0.8 per cent, while coke futures in the world’s top steel producer rose 1.1 per cent on Thursday because mills in China increased price to offset the cost of higher raw materials.
Chinese rebar futures and many other commodities tumbled on Wednesday, amid concerns about a slowing economy in the world's top consumer of a range of commodities.
The most active rebar on the Shanghai Futures Exchange dropped more than 3%.
Some US producers were making efforts to hold offers at higher announced pricing, while the US hot-dipped galvanized steel sheet price still continued to fall, source said.
In the galvanized market, it has been difficult for the increase to gain any lasting momentum although US mills in mid-October announced a price increase on sheet steel products, according to relative source.
Chinese rebar futures rose on Monday as steel mills across northern China had been ordered to cut output for four months from November to limit smog, which tightened supply.
The most active rebar on the Shanghai Futures Exchange had climbed 0.6 per cent to 3,794 RMB ($570.68) per tonne by the midday break.
Global billet price continued to decline last week due to weak demand, except in China, in line with the weakening Turkish scrap import market.
In China, billet price pushed up slightly throughout the week. On November 10, the market ended the week with price up by 80 RMB per tonne from the previous Friday, reaching 3,720 RMB ($561) per tonne, including VAT, in Tangshan.
Japanese ferrous scrap export price from Tokyo Bay by end December rose $11/mt (Yen 1,290/mt) from last month's highest bid in Thursday's monthly auction.
Chinese rebar futures and the prices of raw meterials rose to multi-week highs on Thursday. Traders said the rally may be fueled by speculative investors as demand for steelmaking raw material was at risk. And the risk was the result of steel capacity cut in China as part of Beijing's fight against smog.
Chinese rebar futures edged down, coal futures and iron ore futures extended gains on Friday.
On the Shanghai Futures Exchange, the most active steel rebar contract rose 1.2% to 3,700 RMB. The most-traded coking coal futures on the Dalian Commodity Exchange jumped 2.6% to 1,140 RMB ($172.27) per tonne. Iron ore for delivery to China’s Qingdao port .IO62-CNO=MB edged up 0.7% to $59.79 per tonne on Thursday.