Shanghai rebar futures slipped on Thursday to trade near record lows reached the session before, as weak demand in top consumer China kept pressure on steel prices that have fallen by nearly a third this year.
Steel mills in China with long-term iron ore contracts with miners have continued to unload excess cargoes into the spot market, adding to plentiful supply that has overwhelmed the market and has trapped prices for the raw material near 5-year lows, Reuters reported.
Chinese steel prices closed flat for the day. The price of iron ore 58% fines from India hit a high price of CNY 840.00 ($136.77) and a low price of CNY 830.00 ($135.14) per dry metric ton. The price of Chinese HRC continues hovering around CNY 3,030 ($493.34) per metric ton for the fifth day in a row. The price of Chinese coking coal remained essentially flat at CNY 1,390 ($226.32) per metric ton.
The cash price of steel billet saw essentially no change on the LME for the fifth day in a row, remaining around $450.00 per metric ton. For the fifth consecutive day, the 3-month price of steel billet held flat on the LME at $455.00 per metric ton.
The 3-month price of the US HRC futures contract saw little movement yesterday, closing out around $628.00 per short ton. The US HRC futures contract spot price saw little movement yesterday at $637.00 per short ton.