Local Chinese longs prices edge down before year-end, slow demand dominates

As of December 23, average Chinese domestic rebar and wire rod prices have moved down amid decreasing rebar futures, with slow winter demand dominating the market.

The average rebar price has decreased by RMB 40/mt ($5.6/mt) compared to December 16, while the average 6.5 mm HPB 300 wire rod price has seen a drop of RMB 27/mt ($3.8/mt). Rebar prices have edged down by RMB 13/mt ($1.8/mt) compared to the previous trading day, December 20.  

During the given week, rebar and wire rod prices have moved down amid the prevailing cautious sentiments among market players. Demand from downstream users has slackened due to the cold weather affecting construction activities. The supply of rebar and wire rod may fluctuate within a limited range in the coming week, while demand will unlikely improve, which will negatively affect prices. It is thought that rebar and wire rod prices in the Chinese domestic market will continue their downtrend, with limited decreases as the relatively low inventory levels may bolster prices to a certain degree.

As of December 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,290/mt ($458/mt), decreasing by RMB 72/mt ($10/mt) or 2.1 percent since December 16, while up 0.21 percent compared to the previous trading day, December 20.  

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 7.187