Local long steel prices in China increase, supported by strong futures

During the week ending August 30, average Chinese domestic rebar and wire rod prices have edged up, mainly thanks to the rise seen today amid surging rebar futures.

During the given period, the average rebar price has increased by RMB 43/mt, while the average wire rod price has increased by RMB 57/mt. Today, on August 30, average rebar prices have rebounded by RMB 60/mt, offsetting some declines seen late last week.  

Spot rebar and wire rod prices in China have moved up amid the strong rise in rebar futures and the improved sentiments among market players. However, the demand for rebar and wire rod has not seen continuous improvement, indicating the rises will lack solid support. At the same time, the high level of coking coal and coke prices will bolster rebar and wire rod prices to some extent. Since steelmakers’ production restrictions will continue, the rebar and wire rod prices will likely edge up slightly more in the coming week.

On August 30, rebar futures contract (2105) offers closed at RMB 5,354/mt ($828/mt) at Shanghai Futures Exchange, up RMB 252/mt ($39/mt) or by 4.94 percent compared to that recorded on August 23, signaling market players’ bullish sentiments towards the prospect for the future rebar market.

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 6.4677