Local Chinese longs prices up $7-8/mt amid improved demand

As of March 25, average Chinese domestic rebar and wire rod prices have indicated an upward trend amid improving purchasing activities and the positive movement of iron ore prices.

The average rebar price has risen by RMB 57/mt ($8.0/mt) compared to March 18, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 50/mt ($7.0/mt). Rebar prices have edged down by RMB 10/mt compared to Friday, March 22.

During the given week, rebar and wire rod prices have bottomed up from low levels amid the increasing purchases from downstream users. At the same time, import iron ore prices have indicated certain rises compared to last week, bolstering rebar and wire rod prices to a certain degree. Market sentiments have improved amid decreasing inventories. It is expected that rebar and wire rod prices in the Chinese domestic market will move up in the coming week.

As of March 25, rebar futures at Shanghai Futures Exchange are standing at RMB 3,585/mt ($505mt), increasing by RMB 72/mt ($10/mt) or 2.05 percent since March 18, while down 0.75 percent compared to the previous trading day, March 22.

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 7.0996