Local Chinese longs prices loss over $20/mt over week  

As of August 22, average Chinese domestic rebar and wire rod prices have moved down by over $20/mt week on week, though since Friday there has been tiny rises. The downtrend has been due to the weak demand amid hot temperature, which significantly slowed the construction activities. 

The average rebar price has declined by RMB 90/mt week on week, while the average wire rod price has lost also RMB 90/mt. Taking into account the currency fluctuations, the dollar equivalents have gone down by $20.5-21.2/mt. Rebar prices have gained RMB 3/mt since Friday.

During the given week, Chinese rebar and wire rod prices moved down amid the slack demand due to the continuous high temperature. Moreover, rebar futures prices have indicated a downward trend, negatively affecting market players’ sentiments. Currently, inventory levels of rebar and wire rod have been at relatively low levels, which will bolster their prices to some extent, or at least it will prevent them from the sharp falls in the near future. It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.

On August 22, rebar futures contract (rb2210) offers closed at RMB 4,010/mt ($588/mt) at Shanghai Futures Exchange, down RMB 116/mt ($17.0/mt) or 2.8 percent compared to August 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 6.8198