Local Chinese longs prices inch down with both demand and supply easing

As of December 30, average Chinese domestic rebar and wire rod prices have edged down amid the slack demand from downstream users even though steel production has declined as well. Nevertheless, the price declines have been minimal.

The average rebar price has decreased by RMB 13/mt ($1.8/mt) compared to December 23, while the average 6.5 mm HPB 300 wire rod price has seen a decline of RMB 27/mt ($3.8/mt). Rebar prices have edged up by RMB 7/mt ($1.0/mt) compared to the previous trading day, December 27.

During the given week, rebar and wire rod prices have edged down amid the sluggish demand from downstream users as the rush in project activity towards the end of the year has gradually lost momentum. Some rebar and wire rod producers have halted their production, resulting in further decreases in inventory levels, bolstering prices in some regions to a certain degree. The overall supply of rebar and wire rod has more room to decrease since some electric furnace-based producers are entering the shutdown period as the Chinese New Year holiday period (January 28-February 4) is approaching. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

As of December 30, rebar futures at Shanghai Futures Exchange are standing at RMB 3,317mt ($461/mt), increasing by RMB 27/mt ($3.8/mt) or 0.8 percent since December 23, while up 1.0 percent compared to the previous trading day, December 27.  

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 7.1889