No significant rise in local Chinese longs prices amid still weak demand

Monday, 15 August 2022 16:22:17 (GMT+3)   |   Shanghai
       

As of August 15, average Chinese domestic rebar and wire rod prices have edged up slightly week on week, and since last Friday also, though the gains have been very small as still weak demand has prevented the market from recording any significant hikes so far. The major supporting factor for spot rebar prices is the outlook for September, not the current fundamentals. 

The average rebar price has risen by RMB 10/mt week on week, while the average wire rod price has also gained RMB 10/mt. Rebar prices have increased by RMB 27/mt since Friday.

During the given week, rebar and wire rod prices have indicated slight rises, while demand has slackened due to the widespread hot weather. At the same time, inventory levels of rebar and wire rod have indicated decreases, bolstering prices to a certain degree. Steelmakers have sped up their production resumption rates, while the ongoing sluggish demand may weaken the support for rebar and wire rod prices. It is thought that rebar and wire rod prices may see slight rises in the coming week, though within a limited range.

On August 15, rebar futures contract (rb2210) offers closed at RMB 4,126/mt ($612/mt) at Shanghai Futures Exchange, down RMB 10/mt ($1.5/mt) or 0.24 percent compared to August 8.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Rebar prices in local markets

Spec. (mm) - Category

City

Price (RMB/mt)

Price 
($/mt)

Weekly change 
(RMB/mt)

Weekly change 
($/mt)

25 - HRB400

Beijing

4,110

609.7

0

2.6

Guangzhou

4,400

652.7

-30

-1.6

Shanghai

4,240

629.0

60

11.6

Average price

4,250.0

630.5

10

4.2

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

Spec. (mm) - Category

City

Price

(RMB/mt)

Price ($/mt)

Weekly

change (RMB/mt)

Weekly change 
($/mt)

6.5 - HPB300

Beijing

4,760

706.1

0

3.0

Guangzhou

4,700

697.2

-40

-2.9

Shanghai

5,040

747.7

70

13.5

Average price

4,833.3

717.0

10

4.5

8 - HPB300

Beijing

4,540

673.5

0

2.9

Guangzhou

4,640

688.3

-40

-3.0

Shanghai

4,740

703.2

70

13.4

Average price

4,640.0

688.3

10

4.4

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.741


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