Local Chinese longs prices resume uptrend amid rising futures prices

As of December 11, average Chinese domestic rebar and wire rod prices have moved up compared to last week amid increasing rebar futures prices and relatively low inventory levels.

The average rebar price has risen by RMB 53/mt ($7.4/mt) compared to December 4, while the average 6.5 mm HPB 300 wire rod price has seen an increase of RMB 43/mt ($6/mt). Rebar prices have decreased by RMB 10/mt compared to Friday, December 8.

During the given week, rebar and wire rod prices in the Chinese domestic market have seen rises amid increasing rebar futures prices. At the same time, inventory of rebar and wire rod has been at relatively low levels, bolstering prices to a certain degree. Moreover, production costs of rebar and wire rod have increased due to rising iron ore and coke prices, which have provided solid support for longs prices. Currently, the weather in China has become a lot colder, which will exert a negative impact on the demand for rebar and wire rod and weaken their prices. It is expected that rebar and wire rod prices may indicate slight changes in the coming week.

On December 11, rebar futures contract (rb2405) offers closed at RMB 4,025/mt ($565/mt) at Shanghai Futures Exchange, increasing by RMB 125/mt ($17.6/mt) or 3.2 percent compared to December 4, while decreasing by 0.25 percent compared to the previous trading day.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

Rebar prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.  

$1 = RMB 7.1163