Local Chinese longs prices rebound, but very slightly so far

As of September 26, average Chinese domestic rebar and wire rod prices have increased week on week, and since last Friday there has been slight rises. Overall, market participants are still cautious, while price rises have been limited as demand has not fully improved yet.

The average rebar price has risen by RMB 27/mt week on week, while the average wire rod price has gained RMB 13/mt. Rebar prices have increased by RMB 3.7/mt since Friday.

During the given week, rebar and wire rod prices in the Chinese domestic market declined first while they moved up later as demand was released following typhoon Muifa. The bearish sentiments among market players eased significantly, bolstering rebar and wire rod prices. At the same time, inventories of rebar and wire rod decreased, exerting a positive impact on prices. As the National Day holiday (October 1-7) is approaching, downstream users may build up stocks, which will positively affect rebar and wire rod prices. It is expected that rebar and wire rod prices in the Chinese domestic market will likely move up in the coming week.

On September 26, rebar futures contract (rb2210) offers closed at RMB 3,765/mt ($536/mt) at Shanghai Futures Exchange, up RMB 69/mt ($9.8/mt) or 1.9 percent compared to September 19.

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 7.0298