At the start of the past week, driven by the recent increases in the futures markets in China, the domestic longs market ceased its declining trend and registered a total increase of up to RMB 100/mt ($15/mt) within just a few days. However, a subsequent softening in the volume of sales transactions caused prices to drop down again.
Product name | Specification | Category | Average price (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
6.5 mm | Q235 | 4,110 | 603 | +2 | |
20 mm | HRB 335 | 4,100 | 601 | -5 | |
20 mm | HRB 400 | 4,227 | 629 | -1 |
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 4,080/mt ($598/mt), RMB 3,950/mt ($579/mt) and RMB 4,300/mt ($630/mt), with HRB 335 grade 20 mm rebar prices respectively at RMB 3,870/mt ($567/mt), RMB 4,230/mt ($620/mt) and RMB 4,200/mt ($616/mt). Meanwhile, HRB 400 grade 20 mm rebar is priced at RMB 3,890/mt ($570/mt), RMB 4,340/mt ($636/mt) and RMB 4,450/mt ($622/mt) in the above respective markets. All prices are ex-mill and include 17 percent VAT.
The sudden increase in longs prices observed in the week in question was mainly induced by the recent strong upticks in the futures markets which boosted market confidence. Regarding the week-on-week price changes, wire rod prices have shown a slight increase while rebar prices have registered some decrease. In the past week, market activities indicated a good performance when prices were on the way up, but weakened shortly afterwards, leading to another decrease in prices.
Steel mills have recently reduced their longs prices. On May 21, local steel producer Shagang Steel reduced its ex-works rebar price by RMB 250/mt ($37/mt). As a result, its ex-works price of 14-25 mm HRB 335 rebar now stands at RMB 4,050/mt ($594/mt). In addition, this producer's common carbon wire rod price was decreased by RMB 300/mt ($44/mt). Thus, its ex-works price of Q235 common carbon wire rod of 6.5 mm size has declined to RMB 4,300/mt ($630/mt).
In addition, Jiangsu Province-based Yong Steel has adjusted its rebar and wire rod prices downward by RMB 250/mt ($37/mt) and RMB 150/mt ($22/mt) respectively. Accordingly, in Nanjing city its ex-works price of 14-25 mm HRB 335 rebar is RMB 4,079/mt ($598/mt), while its ex-works price of Q235 wire rod of 6.5 mm size is RMB 4,309/mt ($632/mt).
Looking forward, the Chinese longs market is expected to continue to be characterized by uncertainty, without any strong price swings in the market.