Local Chinese longs prices decline, but some tentative rebound in mood seen today

During the week ending January 13, average Chinese domestic rebar and wire rod prices have edged down amid the prevailing bearish sentiments among market players, though, on Monday, January 13, futures prices have rebounded, supporting the market mood a little.

The average rebar price has decreased by RMB 37/mt ($5.1/mt) compared to January 6, while the average 6.5 mm HPB 300 wire rod price has seen a drop of RMB 40/mt ($5.6/mt). Rebar prices have edged up by RMB 17/mt ($2.4/mt) compared to the previous trading day, January 10.  

During the given week, rebar and wire rod prices in the Chinese domestic market have decreased as market players have been unwilling to build up stocks for the winter. Bearish sentiments have prevailed among market players. At the same time, some traders have decided to cut selling prices, aiming to reduce their inventory levels and avoid potential risks. In the spot market, the inventory of rebar and wire rod has risen slightly, exerting a negative impact on prices. Raw material prices have moved down, weakening the support for rebar and wire rod prices. But since production levels keep falling gradually, it is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

As of January 13, rebar futures at Shanghai Futures Exchange are standing at RMB 3,249/mt ($452/mt), decreasing by RMB 3/mt ($0.4/mt) or 0.09 percent since January 6, while up 1.44 percent compared to the previous trading day, January 10.  

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 7.1885