Local Chinese longs prices move up amid better demand-supply balance

During the week ending September 6, average Chinese domestic rebar and wire rod prices have edged up amid increasing rebar futures prices, lower production in late August and some periodical restocking by customers.

During the given period, the average rebar price has gained RMB 83/mt, while the average wire rod price has risen by RMB 67/mt. Today, September 6, rebar prices in China have gained RMB 34/mt, according to SteelOrbis’ data.

During the given week, local rebar and wire rod prices have edged up amid the expectations for production restrictions in more provinces and the reduction in output reported for the last 10 days of August. In August 21-31, the average aggregate daily crude steel output of large and medium-sized steel enterprises in China - all CISA members - totaled 2.0527 million mt, down 3.99 percent compared to mid-August. Meanwhile, rebar futures prices have moved up, exerting a positive impact on prices in the spot market. Demand has started to see improvement in early September, and this trend will likely continue. It is thought that rebar and wire rod prices in China will edge up further in the coming week.

On September 6, rebar futures closed at RMB 5,473/mt ($848/mt) at Shanghai Futures Exchange, up RMB 119/mt ($18.4/mt) or by 2.22 percent compared to August 30, signaling market players’ bullish sentiments. The rise in rebar futures prices on Monday compared to the previous trading day was RMB 92/mt ($14/mt) or 1.7 percent.

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 6.4529