Local Chinese longs prices fall further amid no post-holiday improvements

As of October 9, average Chinese domestic rebar and wire rod prices have moved down compared to September 25, signaling that there is no usual post-holiday improvement in demand so far.   

The average rebar price has declined by RMB 50/mt ($72/mt) compared to September 25, while the average 6.5 mm HPB 300 wire rod price has seen a decrease of RMB 30/mt ($4.2/mt). Rebar prices have declined by RMB 33/mt ($4.6/mt) compared to September 28, the previous trading day before the long holiday. 

During the given period, rebar and wire rod prices in the Chinese domestic market have moved on a downtrend, while transaction activities have been weak. A few steelmakers have started to implement maintenance works amid low profitability, which has eased the pressure from the supply side. Currently, rebar and wire rod supplies arriving in the market have increased slightly, while transaction activities have not improved significantly. Most market players hold cautious sentiments as regards the future prospects for the market. It is expected that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.  

On October 9, rebar futures contract (rb2401) offers closed at RMB 3,638/mt ($507/mt) at Shanghai Futures Exchange, decreasing by RMB 78/mt ($10.9/mt) compared to September 25, while decreasing by 1.68 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 7.1789