Local Chinese longs prices fall around $20/mt over week due to reduced demand

As of June 26, average Chinese domestic rebar and wire rod prices have moved down by around $20/mt as the rainy weather has been hitting demand.

The average rebar price has decreased by RMB 93/mt compared to June 19, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 97/mt. 

During the given week, rebar and wire rod prices in the Chinese domestic market have moved down amid the large-scale heavy rains in China and Dragon Boat Festival (June 22-25). Demand for rebar and wire rod has slackened, exerting a negative impact on their prices. Meanwhile, rebar futures prices have indicated a downtrend, negatively affecting market players’ sentiments. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge down in the coming week amid the continuing rainy weather in eastern China and high temperature in northern China. 

On June 26, rebar futures contract (rb2210) offers closed at RMB 3,667/mt ($509/mt) at Shanghai Futures Exchange, decreasing by RMB 85/mt ($11.8/mt) or 2.3 percent compared to June 19, while decreasing by 1.24 percent compared to the previous trading day. 

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 7.2056