Local Chinese longs prices fluctuate within limited range before Chinese New Year

As of January 27, average Chinese domestic rebar and wire rod prices have fluctuated within a limited range amid the impact of Chinese New Year holiday (January 28-February 4). The outlook is cautiously optimistic for the post-holiday period.

The average rebar price has declined by RMB 3/mt ($0.4/mt) compared to January 20, while the average 6.5 mm HPB 300 wire rod price has seen a decrease of RMB 3/mt ($0.4/mt). Rebar prices have remained stable compared to the previous trading day, January 24.  

During the given week, rebar and wire rod prices in the Chinese domestic market have fluctuated within a limited range. Most market players have left the market for the Chinese New Year holiday, resulting in quiet transaction activity. The demand from downstream users will remain sluggish, which will affect rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will remain unchanged in the coming week and will edge up after the long holiday.

As of January 27, rebar futures at Shanghai Futures Exchange are standing at RMB 3,382/mt ($472/mt), increasing by RMB 28/mt ($3.9/mt) or 0.8 percent since January 20, while up 0.86 percent compared to the previous trading day, January 24.  

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 7.1698