Local Chinese longs prices edge up, overall sentiments stable

As of December 16, average Chinese domestic rebar and wire rod prices have edged up amid increasing rebar futures and better long-term expectations, though overall sentiments have been rather stable amid conditions of lower demand and production cuts during the winter season.

The average rebar price has increased by RMB 47/mt ($6.5/mt) compared to December 9, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 63/mt ($8.8/mt). Rebar prices have edged down by RMB 7/mt ($1/mt) compared to the previous trading day, December 13.

During the given week, rebar and wire rod prices in the Chinese domestic market have edged up amid improved sentiments due to China’s announcement that it will implement a “moderately loose” monetary policy in 2025. Most rebar and wire rod producers will implement more maintenance works as the winter inspections approach, which will bolster prices to a certain degree. However, the demand from downstream users has remained slack in the traditional offseason, which will exert a negative impact on rebar and wire rod prices. Inventory of rebar and wire rod has been at relatively low levels, providing support for prices. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

As of December 16, rebar futures at Shanghai Futures Exchange are standing at RMB 3,362/mt ($468/mt), increasing by RMB 32/mt ($4.5/mt) or 0.96 percent since December 9, while down 0.44 percent compared to the previous trading day, December 13.  

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 7.1882