Local Chinese longs prices fluctuate in limited range, amid cost support but demand weak

As of November 25, average Chinese domestic rebar prices have remained stable, while average wire rod prices have continued their downtrend amid cautious market sentiments.

The average rebar price has remained stable compared to November 18, while the average 6.5 mm HPB 300 wire rod price has seen a decrease of RMB 20/mt ($2.8/mt). Rebar prices have decreased by RMB 7/mt ($1/mt) compared to the previous trading day, November 22.

During the given week, rebar prices in the Chinese domestic market have moved sideways, while wire rod prices have continued their slight downtrend amid the prevailing cautious sentiments among market players. Import iron ore prices have moved up, bolstering rebar and wire rod prices to a certain degree. However, the demand from downstream users has been slack. Moreover, a strong wave of cold weather is imminent, which will weaken demand further. It is expected rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week, while market players expect a better performance in the rebar and wire rod market as the period of stock replenishment for the winter is approaching.

As of November 25, rebar futures at Shanghai Futures Exchange are standing at RMB 3,297/mt ($459/mt), increasing by RMB 18/mt ($2.5/mt) or 0.55 percent since November 18, while down 0.21 percent compared to the previous trading day, November 22.  

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 7.1918