Local Chinese longs prices post minimal increases over past week

As of today, August 8, average Chinese domestic rebar and wire rod prices have posted some increases week on week, which however, have been minimal as traders have been trying to keep sales firm, while the demand fundamentals are still not so strong. Most of the rises in prices have been seen today.

The average rebar price has risen by RMB 17/mt week on week, while the average wire rod price has gained RMB 7/mt. In the second half of last week, prices were decreasing gradually as suppliers were trying to sell stocks, expecting higher supplies. At the same time, rebar prices have increased by RMB 53/mt since Friday, resulting in the slight week-on-week rises in prices.

During the given week, rebar and wire rod prices have edged up amid increasing rebar futures prices and declining inventory levels. However, output of rebar and wire rod has been higher than in the previous week, which has exerted a negative impact on the market, and so some market players have held a wait-and-see stance. Demand may not improve significantly in the short term. It is thought that steel plate prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week. 

On August 8, rebar futures contract (rb2210) offers closed at RMB 4,136/mt ($611/mt) at Shanghai Futures Exchange, up RMB 43/mt ($6.4/mt) or 1.05 percent compared to August 1.

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 6.7695