Local Chinese longs prices indicate steady increases

As of January 9, average Chinese domestic rebar and wire rod prices have moved up week on week, and since last Friday there have been certain increases. The latest hikes have been in line with market expectations as this week some stock replenishment is expected ahead of the Chinese New Year holiday, while supply has not been so high.

The average rebar price has increased by RMB 100/mt compared to December 26, while the average wire rod price has gained RMB 93/mt. Rebar prices have increased by RMB 10/mt since last Friday.

During the given week, rebar and wire rod prices in the Chinese domestic market have moved up as most steelmakers have issued their prices for stock replenishment for the winter at relatively high levels. By the end of this week, market players will start to halt their business activities as the Chinese New Year holiday (January 21-27) is approaching. Moreover, more steelmakers have halted production, reducing supply to the market. However, demand for rebar and wire rod has slackened in winter. It is thought that rebar and wire rod prices in the Chinese domestic market will edge up slightly in the coming week.

On January 9, rebar futures contract (rb2210) offers closed at RMB 4,093/mt ($599.3/mt) at Shanghai Futures Exchange, up RMB 87/mt ($12.7/mt) or 2.2 percent compared to December 26.

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 6.8265