While there were no changes in the new price lists of China's longs producers in the week ending June 7, domestic market prices trended down steadily. As of June 7, average longs prices in China's main cities are as follows:
Product name |
Specification |
Category |
Average price (RMB/mt) |
Price ($/mt) |
Weekly change ($/mt) |
6.5 mm |
Q235 |
4,067 |
596 |
-7 |
|
20 mm |
HRB 335 |
4,000 |
587 |
-13 |
|
20 mm |
HRB 400 |
4,133 |
606 |
-11 |
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 4,040/mt ($592/mt), RMB 4,000/mt ($587/mt) and RMB 4,160/mt ($610/mt), with HRB 335 grade 20 mm rebar prices respectively at RMB 3,820/mt ($560/mt), RMB 4,140/mt ($607/mt) and RMB 4,040/mt ($592/mt). Meanwhile, HRB 400 grade 20 mm rebar is priced at RMB 3,850/mt ($565/mt), RMB 4,230/mt ($620/mt) and RMB 4,320/mt ($633/mt) in the above respective markets. All prices are ex-mill and include 17 percent VAT.
A moderate declining trend has prevailed in China's longs market in the past week. There is no big pressure from inventory despite the lower volume of transactions. A lack of confidence is observed among market players, most of whom are following a waiting strategy.
During the week in question, domestic longs producers announced their new price policies for June, keeping their prices unchanged from the previous month. In the northern and eastern regions, some longs producers are planning to overhaul their production facilities. Given their high raw material and energy costs, mills are expected to hold their prices steady in the coming period.
Except for some big traders, most traders have lately been concluding deals for tonnages not greater than 1,000 mt. The sharp declines in the stocks market have had a negative influence on the steel market. It is expected that the current downward trend will continue in the coming period.