Debar price dropped in Shanghai market

November 20 MetalBiz—Debar price began to drop since the second half of last week in Shanghai market. Traders attributed it to the bad transactions.  

On November 19, the 18-25mm HRB335 debar quoted about 3,480-3,520 yuan per ton, lower than 3,590-3,620 yuan per ton on November 11. The price of 18-22mm HRB400 debar also fell back to 3,650 yuan per ton. The aforesaid prices all include 17% VAT.

A trader in Shanghai said that “the deals are few”. Some traders worried that if steel resource in northern mills pours into southern areas after snow, the market pressure will be larger at that time. Last week, most highways were blocked in Hebei and Shanxi with the snowstorm, which affected the shipment of steel.

Although demand decreased with the seasonal factors, steel mills did not reduce production. According to the data from CISA, China’s debar production recorded high in October with 11.59mln tons.

The future prices also presented weak trend this year. On November 19, the settlement price of debar contract price in Feb. dropped to 4,034 yuan per ton, down from 4,069 yuan per ton in November 16.

However, spot price is relatively stable in Beijing market. Most second-grade steel offers 3,570-3,600 yuan per ton. A trader from Beijing said that under the great impact of future prices, spot market fluctuated frequently in Shanghai market.