Local Chinese longs prices change only slightly as demand weakens

During the week ending August 10, average prices of Chinese domestic rebar and wire rod have edged up, but only slightly, being supported by futures early last week, but overall demand has been weaker.

Average rebar and wire rod prices have added RMB 10/mt over the week. On August 10, Jiangsu Province-based Chinese steelmaker Nanjing Iron and Steel has decreased its rebar price by RMB 20/mt ($2.8/mt), while Hebei Province-based Chinese steelmaker Hebei Iron and Steel raised its rebar price by RMB 10/mt ($1.4/mt).

Meanwhile, rebar futures prices at Shanghai Futures Exchange (SHFE) have seen an uptrend first while a downtrend later, affecting market players’ sentiments. The demand from downstream users has not seen improvement in the given week, resulting in traders’ cautious sentiments.

Rebar futures declined last week, on August 10 rebar futures contract (2010) offers closed at RMB 3,822/mt ($549/mt) at Shanghai Futures Exchange, down RMB 12/mt ($1.7/mt) or by 0.3 percent since August 3, signaling market players’ cautious sentiments towards prospect for the future market following quick rises in the previous period.

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 6.9649