The performance of the Chinese longs market has varied during the past week according to the regions, with the softening of the steel futures market making its influence felt, especially in the longs markets in Beijing and Tianjin.
Product name | Specification | Category | Average price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Rebar | 20 mm | HRB 335 | 3,590 | 526 | +40 |
Rebar | 20 mm | HRB 400 | 3,740 | 548 | +40 |
Wire rod | 6.5 mm | Q235 | 3,480 | 510 | +50 |
Over the past week, wire rod and rebar prices in eastern China posted an obvious increase, accompanied by normal levels of trading. Due to the market rumors that local steel giant Shagang is likely to raise its prices for early November, a remarkable improvement was seen in market trading towards the end of the past week.
The long products market in southern China continued to be boosted by the price rises posted in the Shanghai and Beijing markets. Generally speaking, commercial activity in southern China seemed quite strong during the first half of the week, but then became weak during the remainder of the week with a certain price decline recorded in the local market. On the mills' side, due to the improved market situation, Shaoguan Steel and Guangzhou Steel both announced slight hikes to their ex-factory prices.
In Beijing and Tianjin, in the past week construction steel prices first climbed up to high levels before then dropping back down. The market was first driven up by the rising steel futures market before seeing a correction on October 28, and finally becoming stable at the end of the week. The frequent fluctuations of market prices have had a strong negative impact on the market atmosphere.
On the raw materials side, stimulated by the ascension of the construction steel market, raw material prices in China have shown an overall improvement. The local pig iron market has gradually become stable, with certain rise observed in some regions. Meanwhile, local scrap prices have been moving on a positive trend, with billet prices in China climbing up by a small margin.
Overall, under the influence of the steel futures market, China's domestic long products market has been characterized by fluctuations during the past week, making both buyers and sellers cautious as regards market trading.