Local Chinese longs prices down slightly amid weak demand, outlook stable as supply falls too

During the week ending January 6, average Chinese domestic rebar and wire rod prices have moved down amid the sluggish demand from downstream users, while the outlook is relatively stable, considering also the decrease on the supply side.

The average rebar price has decreased by RMB 27/mt ($3.8/mt) compared to December 30, 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 down by RMB 14/mt ($1.95/mt) compared to the previous trading day, January 3.

During the given week, rebar and wire rod prices in the Chinese domestic market have moved on a downward trend amid the slacker demand from downstream users. Both demand and supply in the rebar and wire rod market have decreased, exerting a negative impact on market sentiments. Inventory levels of rebar and wire rod are expected to increase in the coming period, which may negatively affect prices. However, as the cost of stock build-ups for the winter has been set, sellers may be unwilling to reduce their prices. It is expected that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week.

As of January 6, rebar futures at Shanghai Futures Exchange are standing at RMB 3,252/mt ($452/mt), decreasing by RMB 65/mt ($9/mt) or 1.96 percent since December 30, while down 0.85 percent compared to the previous trading day, January 3.

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 7.1876