Over the past week, the Chinese longs market has remained on its rising trend, posting a significant increase, in a context of both increasing raw material and ex-factory prices. Meanwhile, deals are actively being concluded in the market.
Product name | Specification | Category | Average price (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
6.5 mm | Q235 | 4,077 | 598 | +39 | |
20 mm | HRB 335 | 3,980 | 584 | +30 | |
20 mm | HRB 400 | 4,110 | 603 | +28 |
By the end of trading on March 15, market prices of 6.5 mm Q235 high speed wire rod were at RMB 4,030/mt ($591/mt), RMB 4,120/mt ($604/mt) and RMB 4,080/mt ($598/mt) in Shanghai, Beijing and Guangzhou respectively; meanwhile 20 mm HRB 335 rebar prices stood at RMB 3,810/mt ($559/mt), RMB 4,100/mt ($601/mt) and RMB 4,030/mt ($591/mt) in the above respective areas, with 20 mm HRB 400 offered at RMB 3,880/mt ($569/mt), RMB 4,170/mt ($611/mt) and RMB 4,280/mt ($628/mt) respectively.
During the past week, China's domestic prices of wire rod and rebar have climbed up significantly, with the market in eastern China rising first, followed by the other regional markets. With prices increasing, traders are tending to limit their sales in order to gain higher prices later. Meanwhile, downstream users have become more active in concluding deals, as they also anticipate further increases. Overall wire rod deal prices in China have risen by about RMB 100/mt ($15/mt) week on week.
The increases in question have been led by the hikes in domestic ex-factory prices. On March 11, Jiangsu Province-based Shagang Group announced its ex-factory prices for mid-March, with a rise of RMB 40/mt ($6/mt) for rebar. As a result, the producer's current ex-factory price of 14-25 mm HRB 335 rebar stands at RMB 3,900/mt ($572/mt). Meanwhile, Shagang Group's price of common carbon wire rod has remained at the same level, while its 6.5 mm Q235 common carbon high speed wire is priced at RMB 4,050/mt ($594/mt). On the other hand, Jiangsu Province-based Zenith Steel Group has raised its high speed wire rod price by RMB 90/mt ($13/mt), with its 6.5 mm Q235 high speed wire rod price now at RMB 4,070/mt ($597/mt). This steelmaker has also increased its rebar price by RMB 140/mt ($21/mt), with its 18-25 mm HRB 335 rebar priced at RMB 3,900/mt ($572/mt) and its 18-25 mm HRB 400 rebar at RMB 4,000/mt ($587/mt). Also in Jiangsu Province, Yonggang Group has increased its rebar price by RMB 130/mt ($19/mt), with its price of 14-25 mm HRB 335 rebar at the level of RMB 3,959/mt ($580/mt) in the region of Nanjing.
As regards inventories, the inventories of rebar in some cities in China are continuing to increase, due to the volume of arrivals. At the same time, the stocks of wire rod in the domestic market have registered a decrease after the holiday.