Local Chinese longs prices rise slightly despite rainy weather

During the week ending July 6, average Chinese domestic rebar and wire rod prices have mostly edged up amid the uptrend in rebar futures prices in China, though overall domestic demand is still under pressure from rainy weather conditions.  

During the given week, the rainy weather and floods have continued to exert a negative impact on demand for rebar and wire rod. Nevertheless, the average rebar price has risen by RMB 7/mt, while the average wire rod price has increased by RMB 10/mt, according to SteelOrbis’ information.

Rebar and wire rod outputs in China will likely edge down in the coming week as some steelmakers implement production halts and temporary maintenance works during the offseason. However, demand is unlikely to improve as the rainy weather and floods will continue in China. The increasing inventories of rebar and wire rod will negatively affect prices. It is thought that rebar and wire rod in the Chinese domestic market will fluctuate within a limited range in the coming week.

On Monday, July 6, rebar futures prices closed at RMB 3,618/mt ($512/mt) at Shanghai Futures Exchange, up RMB 66/mt ($9.4/mt) or 1.9 percent since June 29, while increasing by RMB 15/mt ($2.1/mt) compared to Friday, July 3.

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 7.066