Local Chinese longs prices rise amid futures support, trade slows before holiday

As of January 13, average Chinese domestic rebar and wire rod prices have moved up amid increasing rebar futures prices, though trading has been very slow ahead of the long holiday and production has also decreased.

The average rebar price has risen by RMB 60/mt ($8.3/mt) compared to January 13, while the average 6.5 mm HPB 300 wire rod price has seen an increase of RMB 57/mt ($7.9/mt). Rebar prices have edged up by RMB 7/mt ($1/mt) compared to the previous trading day, January 17.

During the given week, rebar and wire rod prices in the Chinese domestic market have risen amid increasing rebar futures prices. The holiday mood has been gaining ground in the past week, while only a few major projects have been showing demand for rebar and wire rod, resulting in gradual declines in trade volumes, while demand for rebar and wire rod is expected to come to a standstill next week due to the Chinese New Year holiday (January 28-February 4). It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week.

As of January 20, rebar futures at Shanghai Futures Exchange are standing at RMB 3,354/mt ($466.5/mt), increasing by RMB 105/mt ($14.6/mt) or 3.2 percent since January 13, while up 0.24 percent compared to the previous trading day, January 17.  

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 7.1886