Local Chinese longs prices down only slightly amid output cuts

During the week ending August 5, average Chinese domestic rebar and wire rod prices have moved down as demand is weak. However, the declines have been very limited and the market is expected to bottom up against the backdrop of steel production cuts by many mills.

The average rebar price has decreased by RMB 20/mt ($2.8/mt) compared to July 29, while the average 6.5 mm HPB 300 wire rod price has seen a decrease of RMB 13/mt ($1.8/mt). Rebar prices have edged down by RMB 17/mt compared to the previous trading day, August 2.

During the given week, rebar and wire rod prices in the Chinese domestic market have edged down slightly amid the hot weather conditions and the imminent change in the national standards for rebar and wire rod. Due to the losses incurred by steelmakers, many of them have halted production, resulting in reduced supplies and inventories of rebar and wire rod. Market sentiments have improved to a certain degree as more producers will implement maintenance works. It is thought that rebar and wire rod prices in the Chinese domestic market will likely bottom up in the coming week.

As of August 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,367/mt ($472/mt), increasing by RMB 4/mt ($0.6/mt) or 0.1 percent since July 29, while up 0.42 percent compared to the previous trading day, August 2.  

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 7.1345