Local Chinese longs prices still on the rise, but at slower pace

During the week ending November 16, average Chinese domestic rebar and wire rod prices have edged up slightly amid declining inventories and decent demand, though at a slower pace than in the previous week.

Over the past week, the average rebar price has increased by RMB 47/mt, while the average wire rod price has risen by RMB 37/mt. Demand for rebar and wire rod is still good, while inventories have decreased, providing support for prices. Currently, blast furnace capacity utilization rates are still at high levels amid booming construction activities. For now, the outlook for long steel prices in China is still positive, taking into account the positive data published by the National Bureau of Statistics (NBS) regarding the real estate market. However, cautious sentiments have started to be seen among market players, it is thought that longs prices in the Chinese domestic market will likely see a downward correction by the end of November.

On November 16, rebar futures contract (2101) offers closed at RMB 3,852/mt ($583/mt) at Shanghai Futures Exchange, down RMB 7/mt ($1.1/mt) or by 0.18 percent since November 9, but up 0.5 percent from the previous trading day.

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 6.6048