Local Chinese long steel prices accelerate their downtrend

As of October 21, average Chinese domestic rebar and wire rod prices have moved down further and at a faster pace amid declining rebar futures prices, with no significant improvement seen in demand.

The average rebar price has decreased by RMB170/mt ($25.9/mt) compared to October 14, while the average 6.5 mm HPB 300 wire rod price has seen a decline of RMB 180/mt ($27.5/mt). Rebar prices have decreased by RMB 6/mt ($0.85/mt) compared to the previous trading day, October 18. 

During the given week, rebar and wire rod prices have indicated a downtrend as market sentiments become negative again following the previous sharp price rises. Meanwhile, major Chinese steelmaker Shagang Group has announced a cut of $14/mt in its rebar and wire rod prices for October 21-31, negatively affecting market sentiments. Though there has been a supply shortage for some long products, market players have started to become cautious as regards the future rebar and wire rod price trend, and so some mills have reduced their prices to lower inventory levels and ease pressure. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week. 

As of October 21, rebar futures at Shanghai Futures Exchange are standing at RMB 3,358/mt ($473/mt), decreasing by RMB 144/mt ($20.3/mt) or 4.1percent since October 14, while down 1.08 percent compared to the previous trading day, October 18.  

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 7.0982