Local Chinese longs prices down week on week, increase on Monday

Monday, 28 February 2022 16:05:29 (GMT+3)   |   Shanghai
       

During the week ending February 28, average Chinese domestic rebar and wire rod prices have edged down further, though they rebounded slightly today, Monday.

During the given period, the average rebar price has declined by RMB 70/mt, while the average wire rod price has moved down by RMB 70/mt. Rebar prices have gained RMB 27/mt on Monday compared to Friday.

During the given week, rebar and wire rod prices edged down amid increasing inventory levels. Though the rebar and wire rod outputs indicated an increasing trend, they were at relatively low levels, which will prevent prices from recording sharp falls. At the same time, iron ore prices have moved down, boosting steel enterprises’ profitability, which boosted the enthusiasm of steel enterprises to resume production.

However, the Winter Paralympics will be held during the March 4-13 period, which will continue to negatively affect production. Demand will likely improve as the weather becomes better and better, which will exert a positive impact on the rebar and wire rod market. But the Russia-Ukraine crisis has negatively affected sentiments in the global market. It is thought that rebar and wire rod prices may fluctuate within a limited range in the coming week.

On February 28, rebar futures contract (rb2205) offers closed at RMB 4,693/mt ($742/mt) at Shanghai Futures Exchange, down RMB 152/mt ($24.0/mt) or by 3.1 percent compared to February 21, though prices have rebounded by RMB 90/mt since Friday.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Rebar prices in local markets

Spec. (mm) - Category

City

Price (RMB/mt)

Price 
($/mt)

Weekly change 
(RMB/mt)

Weekly change 
($/mt)

25 - HRB400

Beijing

4,740

749.8

-60

-7.3

Guangzhou

5,030

795.6

-70

-8.8

Shanghai

4,750

751.3

-80

-10.5

Average price

4,840.0

765.6

-70

-8.9

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

Spec. (mm) - Category

City

Price

(RMB/mt)

Price ($/mt)

Weekly

change (RMB/mt)

Weekly change 
($/mt)

6.5 - HPB300

Beijing

5,810

919.0

-50

-5.3

Guangzhou

5,250

830.4

-70

-8.7

Shanghai

5,290

836.8

-90

-11.8

Average price

5,450.0

862.1

-70

-8.6

8 - HPB300

Beijing

5,590

884.2

-50

-5.4

Guangzhou

5,190

820.9

-70

-8.7

Shanghai

4,980

787.7

-90

-12.0

Average price

5,253.3

831.0

-70

-8.7

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.3222


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