Local Chinese long prices continue to rise gradually

During the week ending December 6, average Chinese domestic rebar and wire rod prices have risen amid the upward trend of rebar futures prices in China.

The average rebar price has gained RMB 17/mt, while the average wire rod price has increased by RMB 20/mt over the past week.  

During the given week, local rebar and wire rod prices have indicated an overall uptrend, while prices in northern China have been weaker than those in southern China due to the colder weather. Meanwhile, the inventory of rebar and wire rod has declined, exerting a positive impact on prices, amid overall firm demand in China and the balanced demand-supply situation. Rebar and wire rod trading in northern China will be slacker in the near future, while in southern China it is expected to remain quite good. However, approaching the end of the year, some market players will come under pressure from tight liquidity, signaling that demand will be negatively affected, while stock replenishment for winter will start soon and provide support for rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

On December 6, rebar futures contract (rb2205) offers closed at RMB 4,359/mt ($684.3/mt) at Shanghai Futures Exchange, up RMB 214/mt ($33.6/mt) or by 5.16 percent compared to November 29, signaling market players’ positive sentiments towards the prospects for the future rebar and wire rod market.

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

Rebar prices in local markets

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

 Wire rod prices in local markets

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

$1 = RMB 6.3702