[Ferro-Alloys.com] China’s spot steel prices dropped on Monday July 29 due to Shanghai’s hot weather, Hebei Steel’s higher-than-expected settlement, and a drop in the forward market.

 

In Beijing, grade III rebar was traded at 3,500-3,580 yuan ($566-579) per tonne, down 20-30 yuan ($3-5) per tonne from last Friday. In Shanghai, the same product shed 10-20 yuan ($2-3) per tonne to trade at 3,450-3,620 yuan ($558-586) per tonne. Traders in Beijing were under pressure due to Hebei Steel’s high settlement price. The steelmaker released its settlement price for July deliveries on Monday. It is charging its distributors 3,450 yuan ($558) per tonne for 18-25mm grade III rebar. “The price is a bit higher than market expectations. It’s close to the average price in the spot market in July, which means it would be difficult for traders to make a profit,” a Beijing-based analyst said.