China’s domestic rebar prices fall, but market sentiment turns less bearish

China’s domestic rebar prices fall, but market sentiment turns less bearish
Published by:Jessica Zong<>
9 May 2025 @ 10:28 UTC

China’s domestic rebar prices fell on Friday May 9, following weaker futures prices, though spot market participants became less bearish, sources said. The most-traded rebar futures contract on the Shanghai Futures Exchange fell for the second straight day on Friday, closing at 3,022 yuan per tonne, reflecting a total dip of 76 yuan per tonne from Wednesday’s closing price of 3,098 yuan per tonne.
The drop in rebar futures prices has had a knock-on effect, weighing down on demand and prices in the spot market, according to sources.
However, sellers were less bearish, especially those had lower rebar inventories, sources said.
A trader based in Shanghai said he did not plan to reduce prices in the short term because he was not eager to destock, adding that some grades of rebar are in low stock at his warehouse. The trader offered 3,050 yuan per tonne on Friday and refused to give any discount.
But one industry analyst told Fastmarkets that the weak demand could continue to place downward pressure on rebar prices.
Fastmarkets’ daily price assessment for steel reinforcing bar (rebar) domestic, ex-whs Eastern China was 3,030-3,050 yuan ($419-422) per tonne on Friday, down by 30 yuan per tonne from 3,060-3,080 yuan per tonne on Thursday.
The prices were 30-40 yuan per tonne lower than 3,060-3,090 yuan per tonne two weeks earlier on Friday April 25.
Market Chatter Some steel mills, which had increased billet output and decreased rebar output since late March, were reported by market participants to be planning to raise rebar output in May. However, I disagree because the profit margins for billet remain higher than those for rebar. As a result, the supply-demand balance is unlikely to be disturbed in the short term, a second trader based in Shanghai said.
Billet Fastmarkets’ daily price assessment for steel billet domestic, exw Tangshan, Northern China was 2,940 yuan per tonne including value-added tax on Friday, down by 30 yuan per tonne from 2,970 yuan per tonne on Thursday.
Shanghai Futures Exchange The most-traded October rebar futures contract on the Shanghai Futures Exchange closed at 3,022 yuan per tonne on Friday, down by 30 yuan per tonne from the closing price of 3,052 yuan per tonne on Thursday.