Chinese long steel export prices down, to stay under pressure in August

Wednesday, 07 August 2019 16:17:42 (GMT+3)   |   Shanghai
       

During the week ending August 7, Chinese export offer prices for rebar and wire rod have moved on a downward trend. At present, rebar offers given by Chinese suppliers are at $490-500/mt FOB, while wire rod offers are at $510-520/mt FOB.

During the given week, rebar futures prices at Shanghai Futures Exchange (SHFE) have seen sharp declines, exerting a negative impact on Chinese rebar and wire rod prices. Local treasury bonds in China have increased in the January-July period this year, reflecting increased local government support for construction. However, rebar and wire rod inventories in China has risen, which will negatively affect the trend of rebar and wire rod prices. The very hot weather conditions will continue in August, limiting demand, while supply is foreseen to increase.

Moreover, depreciation of the RMB has caused Chinese longs producers to be more interested in exports. They have been giving discounts to accelerate sales overseas, but trading activity has not improved much yet as customers have been waiting for a further decline.

It is expected that rebar and wire rod prices from China will stay under pressure in coming weeks due to weak demand domestically and bearish sentiments in the markets for raw materials,i.e., iron ore and coking coal.

Product name

Quality

Spec.

Price ($/mt) FOB

Weekly change ($/mt)

Rebar

ASTM A615

20 mm

495

↓10

Wire rod

SAE1008-1010

7-8.5 mm

515

↓10

 


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