Local Chinese longs prices rise only slightly week on week, futures fall on Monday

As of June 12, average Chinese domestic rebar and wire rod prices have edged up slightly compared to June 5, but the increase has been very small as cautious sentiments have prevailed in the market.

The average rebar price has risen by RMB 7/mt compared to June 5, while the average 6.5 mm HPB 300 wire rod price has increased by RMB 10/mt. Rebar prices have seen a drop of RMB 14/mt compared to last Friday.

During the given week, rebar and wire rod prices in the Chinese domestic market have moved on a slight uptrend amid the increasing trend of rebar futures prices, especially last week, though indicating a decline of 1.06 percent on June 12, signaling cautious sentiments among market players. Currently, inventory of rebar and wire rod has been at relatively low levels, bolstering prices. However, as the rainy season is approaching, demand for rebar and wire rod will slacken, which will exert a negative impact on prices. Shagang Group increased its offer prices for rebar, high-speed wire rod and debar-in-coil by RMB 150/mt ($21.1/mt), RMB 100/mt ($28.2) and RMB 100/mt ($28.2) for June 11-20, which will provide support for the longs market. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up slightly in the coming week.

On June 12, rebar futures contract (rb2210) offers closed at RMB 3,652/mt ($513/mt) at Shanghai Futures Exchange, increasing by RMB 14/mt ($2/mt) or 0.38 percent compared to June 5, while decreasing by 1.06 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 7.1212