Chinese longs prices stabilize ahead of holiday, sentiment still weak

Monday, 13 January 2020 14:54:26 (GMT+3)   |   Shanghai
       

During the week ending January 13, average prices of Chinese domestic rebar and wire rod have moved sideways, while transaction activity in the overall domestic rebar and wire rod market has been at low levels compared to the previous week.

During the given week, as the Chinese New Year holiday is drawing closer, demand for rebar and wire rod has slackened further, resulting in low market activity. Most players will leave the market by the end of this week, while steelmakers will implement maintenance works, which will exert a negative impact on both demand and supply. It is expected that rebar and wire rod prices in the Chinese domestic market will mostly move sideways in the coming week.

Nevertheless, major Chinese steelmaker Jiangsu Province-based Shagang Group has cut its offer prices for high-speed wire rod, rebar and bar-in-coil by RMB 80/mt ($11.6/mt) for the January 11-20 period.

Rebar futures have declined in the past week. On January 13, rebar futures contract (2005) offers closed at RMB 3,530/mt ($509.7/mt) at Shanghai Futures Exchange, down by 0.81 percent since January 6.

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

Steel plant/place of origin

Price (RMB/mt)

Price 
($/mt)

Weekly change 
(RMB/mt)

Weekly change 
($/mt)

25 - HRB400

Beijing

Hebei Steel

3,610

521.2

0

+3.4

Guangzhou

Shaoguan Steel

4,160

600.6

0

+4.0

Shanghai

Shente

3,750

541.4

0

+3.6

Average price

 -

3,840.0

554.4

0

+3.7

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

 

Wire rod prices in local markets

Spec. (mm) - Category

City

Steel plant/place of origin

Price

(RMB/mt)

Price ($/mt)

Weekly

change (RMB/mt)

Weekly change 
($/mt)

6.5 - HPB300

Beijing

Hebei Steel

4,390

633.8

0

+4.2

Guangzhou

Shaoguan Steel

4,060

586.2

0

+3.9

Shanghai

Shente Steel

3,800

548.7

0

+3.6

Average price

 -

4,083.3

589.6

0

+3.9

8 - HPB300

Beijing

Hebei Steel

4,240

612.2

0

+4.0

Guangzhou

Shaoguan Steel

4,000

577.5

0

+3.8

Shanghai

Shente Steel

3,800

548.7

0

+3.6

Average price

 -

4,013.3

579.5

0

+3.8

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

$1=RMB 6.926


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