Chinese Rebar Futures Rebounded on Wednesday From Their Lowest

Chinese rebar futures rebounded on Wednesday from their lowest in more than five weeks, supported by an Asian market rally and a rise in the country's steel exports for the first time in four months + SHFE Jan rebar up 0.5% at 4,790 yuan ($745) + SSEC Oct HRC up 0.6% at 4,743 yuan ($733) + Finished steel exports up 3.5% in July Chinese rebar futures rebounded on Wednesday from their lowest in more than five weeks, supported by an Asian market rally and a rise in the country's steel exports for the first time in four months. Shanghai Futures Exchange rebar closed at 4,790 yuan ($745) per tonne, up by 25 yuan or 0.5% from Tuesday. October hot rolled coil rose by 0.6% to 4,743 yuan on the Shanghai Steel Exchange Centre. "The fundamentals for rebar are good: Supply is tightening and exports have risen. I expect rebar prices to build on the rebound," a steel trader said. Market participants were encouraged after China's finished steel exports rebounded 3.5% month-on-month in July to 4.4 million tonnes, according to preliminary customs data. They do not expect shipments to be much lower in August or September. Asian stock markets also rebounded on Wednesday after the US Federal Reserve pledged to keep the benchmark short-term interest rate close to zero until 2013. The Shanghai stock composite index gained 0.9%, the Nikkei 225 was up by over 1% and the Hang Seng index rose by 2.3%. "Rebar futures fell too much on Monday and Tuesday," a Mysteel analyst said. "[But] the trading volume of rebar is still very low, which means it's difficult for it to gain a rapid resurgence." Trading volumes for all SHFE rebar contacts dropped 62% to 356,338 lots on Wednesday. Meanwhile, Shagang Group, which is due to announce its long steel prices for the second ten days in August, is expected to leave them unchanged. It was a mixed spot market on Wednesday, with billet prices flat, rebar prices down and hot rolled coil prices up. Tangshan prices for 150mm commercial billet fell 30 yuan in the morning and rose 30 yuan in the afternoon, ending the day at 4,410 yuan per tonne. Shanghai prices of grade III rebar of 16-25mm diameter fell by 10-20 yuan to 4,670-4,980 yuan per tonne, while wire rod of 8-10mm diameter rose by 30 yuan to 4,900-4,960 yuan. Shanghai prices of commercial-grade hot rolled coil of 5-12mm thickness rose 30-50 yuan to 4,780-4,800 yuan per tonne. Source: metalbulletin.com