Chinese long steel market softens amid weak demand and global uncertainty

The Chinese domestic long steel market has weakened this week in a context of low downstream demand. Also due to increased concerns over the global economic situation, the domestic long steel market in China decreased rapidly at the beginning of the past week. However, subsequently the financial markets calmed down somewhat, which eased the concerns of players in the domestic long steel market.

Domestic rebar prices have declined by $3.1-12.5/mt in the past week. HRB 335 is reported at $746/mt in the Shanghai market, while HRB 400 is reported at $797/mt in the Beijing market. At present, the average price of HRB 335 in China stands at $776/mt, with HRB 400 offered on average at $796/mt across China.
The situation for wire rod is different in each region. Wire rod from Shaoguan has declined by $4.7-7.8/mt week on week to $811/mt in Guangzhou. On the other hand, wire rod prices have picked up by $1.6-7.8/mt week on week in Beijing and Shanghai.

Wire rod prices in local Chinese markets

Although the Chinese long steel market has been affected by the global economic uncertainty to a certain extent, the high levels of raw material prices and the low inventory in the domestic long steel market provide support for long steel prices in China. Meanwhile, new housing and construction projects in China are expected to improve demand for long steel in the domestic market. Influenced by these positive factors, long steel prices in China are expected to rise in the coming week.