During the past week ending August 16, long steel prices in Chinese local market have trended upwards slightly in most regions, whereas traders have been holding different perspectives with the future market. However, in some parts of the nation, prices have shown some kind of weaknesses. As of August 16, average prices of long steel products in the main regions are as follows:
Product name | Specification | Category | Average price (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
6.5 mm | Q235 | 4,233 | 621 | +5 | |
20 mm | HRB335 | 4,170 | 604 | +5 | |
20 mm | HRB400 | 4,277 | 629 | +8 |
In China's three main steel markets, i.e., Shanghai, Beijing and Guangzhou, the prices of Q235 grade 6.5 mm size high speed wire rod now respectively stand at RMB 4,190/mt ($619/mt), RMB 4,220/mt ($623/mt) and RMB 4,260/mt ($629/mt), with HRB 335 grade 20 mm rebar prices respectively at RMB 3,900/mt ($576/mt), RMB 4,180/mt ($617/mt) and RMB 4,240/mt ($626/mt). Meanwhile, HRB 400 grade 20 mm rebar is priced at RMB 3,970/mt ($586/mt), RMB 4,360/mt ($644/mt) and RMB 4,500/mt ($665/mt) in the above respective markets. All prices are ex-mill and include 17 percent VAT.
As some main producers have held on to the uptrend, long prices have continued to climb up in certain regions. In the last week, Hebei Steel Group raised its high speed wire rod offers by RMB 200/mt ($29/mt), while its rebar in coil prices were up RMB 300/mt ($44/mt). However, with any support from the demand, these new offers have trended down quickly. Likewise, Shagang Steel Group also adjusted its steel prices upwards in the week in question. Despite the efforts made by mills, there is limited momentum for the uptrend.
In Shanghai and Beijing markets, long steel prices have slipped somewhat, while in Hangzhou market prices are still ticking up. On the inventory side, for now, rebar and wire rod inventories are continuously decreasing, although still higher than the same period of last year.
During the period in question, Chinese futures market is trending sideways, which has confused market insiders' predictions. Some have started to choose a waiting strategy. For the coming period, it is expected that long prices would keep stable with some minor changes.