Local Chinese longs prices post minor changes, demand to slacken further ahead of holiday

As of January 22, average Chinese domestic rebar and wire rod prices have fluctuated within a limited range compared to last week amid the slight rises in rebar futures prices, while demand has been slower due to seasonal factors and will slacken even more ahead of the Chinese New Year holiday which starts on February 10.

The average rebar price has remained stable compared to January 15, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 7/mt ($1/mt). Rebar prices have risen by RMB 6/mt compared to Friday, January 19.

During the given week, rebar and wire rod prices in the Chinese domestic market have indicated slight fluctuations amid increasing supply to the spot market. At the same time, high iron ore prices have prevented rebar and wire rod prices from recording any significant declines. Cautious sentiment has prevailed among market players as the Chinese New Year holiday (February 9-16) is approaching. Some constructions sites will halt work in the near future, which will weaken the demand for rebar and wire rod further. It is thought that rebar and wire rod prices in the Chinese domestic market will likely continue to fluctuate within a limited range in the coming week.

On January 22, rebar futures contract (rb2405) offers closed at RMB 3,902/mt ($549/mt) at Shanghai Futures Exchange, increasing by RMB 6/mt ($0.85/mt) or 0.15 percent compared to January 15, while decreasing by 0.13 percent compared to the previous trading day.

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 7.1105