Over the past week, the Chinese longs market has weakened somewhat, especially with either decreases observed (wire rod) or slowdowns in growth rate (rebar) recorded in some areas. In addition, longs prices have seen an overall decrease in eastern China under the influence of the rainy weather.
| Product name | Specification | Category | Average price (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
| Wire rod | 6.5 mm | Q235 | 3,810 | 559 | -6 |
| 20 mm | HRB 335 | 3,773 | 553 | +1 | |
| 20 mm | HRB 400 | 3,917 | 574 | - |
By the end of trading on March 8, market prices of 6.5 mm Q235 high speed wire rod were at RMB 3,880/mt ($569/mt), RMB 3,730/mt ($547/mt) and RMB 3,860/mt ($566/mt) in Shanghai, Beijing and Guangzhou respectively; meanwhile 20 mm HRB 335 rebar prices stood at RMB 3,640/mt ($534/mt), RMB 3,820/mt ($560/mt) and RMB 3,860/mt ($566/mt) in the above respective areas, with 20 mm HRB 400 offered at RMB 3,740/mt ($548/mt), RMB 3,900/mt ($572/mt) and RMB 4,110/mt ($603/mt) respectively.
Currently, as disclosed by an insider at one major Chinese steel mill, an increase of 50 percent in iron ore prices has been requested by the ‘big three’ global miners. It is thus expected that the price of finished steel could climb up in the coming period due to higher costs.
At present, market inventory for rebar and wire rod are still at high levels, with millions of metric tons of inventories in the Shanghai market alone. Due to the continuing rainy weather in eastern China, market demand in this area has weakened, leading to a drop in prices after the rise seen in previous weeks.
With China’s National People’s Congress (NPC) and the Chinese People’s Political Consultative Conference (CPPCC) being held in Beijing, the traffic restrictions imposed in certain areas in Beijing have negatively affected the transportation of wire rod supplies. Wire rod prices in this region have maintained a stable trend.
As regards the Guangzhou region, it has been announced that all construction works in this city will have to shut down from September 30 to December 22 this year because of the Asian Games held in Guangzhou. As a result, the demand for building materials in this area is expected to be affected in the second half of the year.
On the import and export side, China’s rebar exports in January reached 16,700 mt, down 19,500 mt or 53.82 percent year on year, totaling $11 million in value, down $12 million or 51.17 percent compared with the same month last year. The average export price was $667.76/mt.
Rebar imports in January reached 3,500 mt, up 1,900 mt or 117.58 percent, amounting to $2 million in value, up $1 million or 40.58 percent year on year. The average import price was $650.31/mt.
China’s wire rod exports in January reached 129,200 mt, up 91,200 mt or 239.85 percent year on year, totaling $69 million in value, up $48 million or 224.43 percent compared with the same month last year. The average export price was $532.43/mt.
Wire rod imports reached 52,100 mt, up 22,000 mt or 72.88 percent, amounting to $51 million in value, up $19 million or 60.5 percent year on year. The average import price was $979.28/mt.