Local Chinese longs post minimal rises from last week, mood worsens today

During the past week ending May 19, average Chinese domestic rebar and wire rod prices have edged up slightly amid decreasing inventories. Nevertheless, after release of weaker than expected economic data, mood in the Chinese longs market has worsened today, May 19.

The average rebar price has increased by RMB 7/mt ($1/mt) compared to May 12, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 7/mt ($1/mt). Rebar prices have decreased by RMB 13/mt ($1.8/mt) compared to the previous trading day, May 16.

During the given week, rebar and wire rod prices in the Chinese domestic market have seen slight rises amid declining inventory levels. Currently, there is little contradiction between supply and demand in the market, signaling there is limited room for prices to fall. However, rebar futures prices have seen slight declines, exerting a negative impact on rebar and wire rod prices. It is expected that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.

As of May 19, rebar futures at Shanghai Futures Exchange are standing at RMB 3,069/mt ($428/mt), decreasing by RMB 13/mt ($6.5/mt) or 0.4 percent since May 12, while down one percent compared to the previous trading day, May 16.

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 7.1916