Local Chinese longs prices fall further as fundamentals remain weak

As of November 18, average Chinese domestic rebar and wire rod prices have continued their downtrend amid declining futures prices, slower demand and the continuing weakness of the seasonal outlook.

The average rebar price has decreased by RMB87/mt ($12.1/mt) compared to November 11, while the average 6.5 mm HPB 300 wire rod price has seen a decrease of RMB 80/mt ($11.1/mt). Rebar prices have decreased by RMB 4/mt ($0.6/mt) compared to the previous trading day, November 15.

During the given week, rebar and wire rod prices in the Chinese domestic market have moved down further amid decreasing rebar futures prices. Inventories of rebar and wire rod have increased in the latter part of the given week, exerting a negative impact on prices. Bearish sentiments have started to prevail among market players, weakening the support for rebar and wire rod prices. Cold weather has affected most regions in China, weakening longs demand. It is thought that rebar and wire rod prices in the Chinese domestic market will edge down further in the coming week.

As of November 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,279/mt ($456/mt), decreasing by RMB 52/mt ($7.2/mt) or 1.6 percent since November 11, while up 0.06 percent compared to the previous trading day, November 15.

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 7.1907