Local Chinese longs prices up by over $30/mt mainly amid better expectations, rise in futures

As of August 1, average Chinese domestic rebar and wire rod prices have moved up week on week by over $30/mt, and since Friday there have also been strong increases. Even despite the hot temperatures in the different regions of China and some Covid-19 restrictions still seen here and there in the country, there are strong expectations that demand will improve in the future, and these have pushed prices up.

The average rebar price has risen by RMB 233/mt week on week, while the average wire rod price has gained RMB 203/mt. Rebar prices have increased by RMB 110/mt since Friday.

During the given week, rebar and wire rod prices have seen an overall rising trend amid some improvements in demand and decreasing inventory level. Market players are confident as regards the future market prospects amid increasing ferrous metal futures prices. However, if steelmakers resume their production output too quickly, rebar and wire rod prices may come under downward pressure in the near future. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up in the coming week.

On August 1, rebar futures contract (rb2210) offers closed at RMB 4,093/mt ($606/mt) at Shanghai Futures Exchange, up RMB 234/mt ($35/mt) or 6.1 percent compared to July 25.

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 6.7467