Local Chinese longs prices slightly higher amid improved sentiment

During the week ending July 5, average Chinese domestic rebar and wire rod prices have moved up amid improved sentiments among market players, which has already been reflected in higher futures prices.  

During the given period, the average rebar price in China has gained RMB 43/mt, while the average wire rod price has risen by RMB 10/mt.  

During the given week, rebar and wire rod prices have edged up amid support from firm iron ore prices, though demand has not seen any significant improvement yet. More steelmakers are implementing maintenance works, which will reduce supply of rebar and wire rod and bolster prices. Construction activities at sites are resuming gradually after the 100th anniversary of the founding of the Communist Party of China, which will provide solid support to rebar and wire rod prices in the near future. It is thought that rebar and wire rod prices may edge up slightly in the coming week.

On July 5, rebar futures contract (2105) offers closed at RMB 5,222/mt ($807/mt) at Shanghai Futures Exchange, up RMB 152/mt ($23.5/mt) or 3.0 percent compared to June 28, reflecting market players’ bullish sentiments as regards the future market prospects.  

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 6.4695