Long prices to increase further with resumption in sites

SteelOrbis Shanghai The rain and busy farming season led construction workers to return their villages for farming. Therefore, some construction sites stopped working in south-western and eastern China, causing prices in the above-mentioned regions to standstill through last week. Nevertheless, driven by the rising ex-factory prices of leading steel mills, Chinese long product prices saw continuous increase last week, with brisk commercial activities and the inventories in major markets declined. On June 2, the average price of 20 mm diameter HRB 335 rebar in Shanghai, Beijing and Guangzhou rose RMB 100/mt ($12) week on week to RMB 3,333/mt ($416), and that of 20 mm diameter HRB 400 rebar rose RMB 120/mt ($15) to RMB 3,480/mt ($434). The average price of 6.5 mm Q235 high speed wire rod rose RMB 87/mt ($11) week on week to RMB 3,640/mt ($454). Leading steel mills in eastern and southern China such as Shagang, Ma'anshan Steel, Guangzhou Steel and Shaoguan Steel hiked their ex-factory prices successively throughout last week, boosting the market prices. Influenced by the overhauling works and lessening inventories of leading steel mills, the market inventory in northern China saw a rapid decrease. Domestic long product markets are under the influence of two factors: First, although rebar prices in eastern and southern China –the major long product consuming markets- increased sharply throughout last week, the price level in these regions are still lower than that of major manufacturing regions in northern and north-eastern China. Second, the rain and busy farming season led construction workers to return their villages for farming. Therefore, some construction sites stopped working in south-western and eastern China, causing prices in the above-mentioned regions to standstill through last week. Chinese long product prices are expected to see a rapid increase in the consumption markets with further product purchases, and when construction workers return to construction sites.