Average local Chinese longs prices up slightly amid rises in Shanghai

Monday, 09 March 2020 17:53:31 (GMT+3)   |   Shanghai
       

During the week ending March 9, average Chinese domestic rebar and wire rod prices moved up first but softened later in the week. As a result, rebar prices have posted a slight RMB 10/mt increase on average over the past week, up $5.4/mt on US dollar basis. Longs prices have edged up in the Shanghai market, but have edged down in Beijing and Guangzhou, while transaction activity in the overall domestic rebar and wire rod market is still at low levels as demand from downstream users has not recovered to the levels the market had expected.

During the given week, inventories of rebar and wire rod have increased further, exerting a negative impact on product prices. Meanwhile, steelmakers’ outputs have risen slightly.

Though rebar futures increased last week, on Monday, March 9 rebar futures contract (2005) offers closed at RMB 3,439/mt ($496.5/mt) at Shanghai Futures Exchange, up RMB 17/mt ($2.5/mt) or by 0.5 percent since March 2, while sentiment has weakened on Monday. Futures prices indicated an upward trend first and then a decline, signaling market players’ unstable sentiment as regards the future prospects for the market, against a backdrop of China’s effective measures to stimulate the resumption of production and the spread of the coronavirus in the global market.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Rebar prices in local markets

Spec. (mm) - Category

City

Price (RMB/mt)

Price 
($/mt)

Weekly change 
(RMB/mt)

Weekly change 
($/mt)

25 - HRB400

Beijing

3,310

477.9

-10

2.3

Guangzhou

3,780

545.8

-10

2.9

Shanghai

3,420

493.8

50

11.1

Average price

3,503.3

505.8

10

5.4

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

 

Spec. (mm) - Category

City

Price

(RMB/mt)

Price ($/mt)

Weekly

change (RMB/mt)

Weekly change 
($/mt)

6.5 - HPB300

Beijing

4,150

599.2

-20

1.9

Guangzhou

3,850

555.9

-20

1.5

Shanghai

3,510

506.8

50

11.2

Average price

3,836.7

554.0

3

4.8

8 - HPB300

Beijing

3,930

567.4

-20

1.6

Guangzhou

3,790

547.2

-20

1.4

Shanghai

3,510

506.8

50

11.2

Average price

3,743.3

540.5

3

4.7

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.926

 


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