Local Chinese longs prices fall unabated amid raw material downtrend, demand worries

As of April 17, average Chinese domestic rebar and wire rod prices have continued to go down unabated, under pressure from still insufficient demand and the downtrend of raw material prices. 

The average rebar price has decreased by RMB 63/mt compared to April 10, while the average 6.5 mm HPB 300 wire rod price has declined by the same amount. Rebar prices have seen a drop of RMB 13/mt compared to last Friday. 

During the given week, rebar and wire rod prices in the Chinese domestic market have continued their downtrend amid decreasing coke prices. Market players are worried about steel prices due to declining raw material prices. Meanwhile, rebar and wire rod producers have chosen to reduce production outputs amid shrinking profitability. As the Labor Day holiday (April 29-May 3) is approaching, demand for rebar and wire rod is unlikely to see big improvements, which will exert a negative impact on prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move sideways, though they may bottom up in certain regions in the coming week.   

On April 17, rebar futures contract (rb2210) offers closed at RMB 3,928/mt ($572/mt) at Shanghai Futures Exchange, increasing by RMB 21/mt ($3.1/mt) compared to April 10.  

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 6.8679