Local Chinese longs prices drop significantly over the week

During the week ending October 25, average Chinese domestic rebar and wire rod prices have moved down significantly amid decreasing rebar futures prices and the prevailing bearish sentiments among market players.

During the given period, the average rebar price has declined by RMB 340/mt, while the average wire rod price has also fallen by RMB 347/mt.  

Over the past week, rebar and wire rod prices in China have indicated a sharp downtrend amid the decreasing trend of rebar futures prices and the prevailing bearish sentiments among market players. The demand for rebar and wire rod has slackened amid production restrictions and power supply limitations. The weather in northern China has been very cold, exerting a negative impact on construction activities, weakening support for rebar and wire rod prices. It is thought that rebar and wire rod prices may fluctuate within a limited range in the coming week. On Monday, October 25, prices rose by RMB 10/mt.

On October 25, rebar futures contract (2201) offers closed at RMB 4,825/mt ($754.6/mt) at Shanghai Futures Exchange, down RMB 597/mt ($93.4/mt) or by 11.0 percent compared to October 18, signaling market players’ bearish sentiments as regards the future prospects for the rebar and wire rod market.

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 6.3942