Local Chinese longs prices decline amid slack eastern Chinese demand

During the week ending November 30, average Chinese domestic rebar and wire rod prices have moved down amid slightly rising inventories and increasing output. Bearish sentiments have emerged among market players as cold weather has hit China, with rebar and wire rod prices in eastern China in particular indicating a sharp declining trend.

Over the past week, the average rebar price has decreased by RMB 87/mt, while the average wire rod price has declined by RMB 83/mt. Recently, cold and rainy weather has hit eastern China, where demand had been quite good previously, resulting in slackening demand there and exerting a negative impact on market players’ overall sentiments. At the same time, rebar and wire rod supplies have continued to circulate into southern China, negatively affecting the market. However, tight supply in eastern China will provide support for rebar and wire rod prices.

On November 30, rebar futures contract (2101) offers closed at RMB 3,906/mt ($594/mt) at Shanghai Futures Exchange, down RMB 5/mt ($0.76/mt) or by 0.13 percent since November 23 and down by 0.56 percent compared to the previous trading day, reflecting market players’ increasing caution towards the future prospects for the market amid the cold weather hitting China.

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 6.5782