Shanghai rebar and HRC futures stable after Tangshan steel hub foreclosure
March 23 (Reuters) – Steel rebar for building materials and hot-rolled coil (HRC), used in the manufacturing sector, were trading in a narrow range on Wednesday due to supply problems after the main steel city Tangshan put put in place a temporary lockdown.
The Tangshan government implemented a temporary lockdown on Tuesday to prevent new COVID-19 cases as infections surged, the local government said in a statement.
“Although consumption of steel products is relatively slow, production is also down,” Huatai Futures analysts wrote in a note.
The situation of tight raw material inventories has not yet reversed, which could further support steel prices, he added.
The Most Traded Steel Rebars on the Shanghai Futures Exchange SRBcv1for May delivery, was flat since the overnight session and stood at 4,931 yuan ($774.24) per ton, as of 02:46 GMT.
Hot rolled coils SHHCcv1used in cars and household appliances, fell 0.4% to 5,149 yuan a ton.
stainless steel price SHSScv1 on the Shanghai Stock Exchange jumped more than 3% to 20,465 yuan a ton, after nickel, the raw material, showed signs of normalization.
Dalian Commodity Exchange Steel Ingredients Extended Losses After Falling More Than 3% During The Night Session, Along With Benchmark Iron Ore DCIocv1 down 0.7% to 813 yuan per ton.
62% iron ore spot price for delivery to China SH-CCN-IRNOR62 fell $3 to $147 a tonne on Tuesday, according to data from consultancy SteelHome.
“Due to transportation disruptions, most steel mills are facing raw material shortages… iron would be braked.
Coking coal price in Dalian DJMcv1 fell 1.6% to 2,943 yuan per ton and coke futures DCJcv1 slipped 0.8% to 3,538 yuan a ton.
($1 = 6.3688 Chinese Yuan)
(Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)
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