Local Chinese longs prices rebound gradually amid higher futures

As of June 27, average Chinese domestic rebar and wire rod prices have moved up week on week, and since Friday there have also been certain prices rises amid improvements in the futures market.

The average rebar price has risen by RMB 47/mt week on week, while the average wire rod price has gained RMB 43/mt over the same period. Rebar prices have increased by RMB 36/mt since last Friday.

During the given week, rebar and wire rod prices in the local market in China have moved up amid rebounding rebar futures prices. Meanwhile, inventory levels have decreased amid declining output, which has bolstered rebar and wire rod prices. High temperatures and rainy weather in southern China have exerted a negative impact on the demand for rebar and wire rod. Bearish sentiments have still prevailed among market players. 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 June 27, rebar futures contract (rb2210) offers closed at RMB 4,274/mt ($639/mt) at Shanghai Futures Exchange, up RMB 125/mt ($19/mt) or 3.0 percent compared to June 20.

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 6.685