Local Chinese longs prices rise slightly, consumption starts to fall

During the week ending February 1, average Chinese domestic rebar and wire rod prices have edged up slightly, but overall consumption in the country has started to fall ahead of the holidays.

Over the past week, the average rebar price has gained RMB 10/mt, while the average wire rod price has risen by RMB 7/mt.

During the given week, rebar and wire rod prices have fluctuated within a limited range amid regions in China issuing policies regarding returns to home towns during the Chinese New Year holiday. Most market players have left for the holiday, resulting in quiet activities in the market. At the same time, the high levels of prices during the winter have negatively affected market players’ willingness to build up stocks. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week.

On February 1, rebar futures contract (2105) offers closed at RMB 4,221/mt ($653/mt) at Shanghai Futures Exchange, down RMB 100/mt ($15.5/mt) or by 2.4 percent compared to January 25 and down by 1.15 percent compared to the previous trading day (January 29), signaling market players’ cautious sentiments towards the future prospects for the rebar market.

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 6.4623