Local Chinese longs prices indicate minor decreases

During the week ending June 22, average prices of Chinese domestic rebar and wire rod have mostly moved down due to the slackening of demand from downstream users amid the rainy weather in eastern and southern China. However, the overall price changes have been very small and sentiment has been stable.

The average rebar price in China has declined by just RMB 20/mt, while average wire rod prices have lost RMB 3/mt, both week on week. During the given week, demand for rebar and wire rod has slackened in most regions of China due to rainy weather and floods. Meanwhile, the decreases in inventories have slowed down. At the same time, rebar and wire rod outputs have declined slightly in the given week, reflecting the cautious mood among steelmakers.

Today, Jiangsu Province-based Shagang Group, China’s largest private steelmaker, has issued its list prices for all long steel products for June 21-30, keeping all its prices stable compared to the previous 10-day period.

On June 22, rebar futures contract (2010) offers closed at RMB 3,620/mt ($511/mt) at Shanghai Futures Exchange, down RMB 48/mt ($6.8/mt) or by 1.34 percent since June 15.

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 7.0865