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https://stock head.com.au/resources/bulk-buys-chinas-record-steel-prices-support-iron-ore-coking-coal-demand-cools/
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You need Vanadium to make rebar* ...China’s steel rebar prices hit record
Chinese steel mills are seeking higher prices this week for their steel reinforcing bar (rebar) which are trading at their highest for 10 years at $US720 per tonne.
At the Shanghai trading hub rebar is selling for $US720 per tonne, representing an on-week rise of $US20 per tonne, according to Metal Bulletin.
“While the increase can be linked to demand hopes as construction projects resume following the Lunar New Year holiday period, policy support may be a factor too,” analysts at the Commonwealth Bank of Australia said in a report.
The Chinese government has published a new policy report that prioritises action in developing steel-intensive infrastructure in China’s countryside areas and remote regions.
The CBA analysts said higher steel product prices in China have alleviated some of the pressure on steel plant profit margins from higher prices for raw materials including iron ore.
“The recent increase in steel prices has led steel mill margins in China to positive territory, providing key support for iron ore prices,” said CBA in a report.
The rise in Chinese steel rebar prices is matched by a sharp upturn in prices for the LME’s steel rebar futures contract which this week is back to trading at near record highs.
Futures contracts for rebar steel for month-ahead delivery changed hands at $US656.50 per tonne on Monday, according to LME data.
Prices for the contract had touched $US658 per tonne in early January.
Steel rebar prices are at 10-year highs. Image: LME
*https://www.argusmedia.com/en/news/1829554-chinas-inspections-to-speed-up-rebar-standards-rollout?backToResults=true
All IMHO, DYOR
