Local Chinese longs prices post tiny increase over week, supported by output cuts

As of December 25, average Chinese domestic rebar and wire rod prices have indicated an uptrend compared to last week amid the increasing rebar futures prices and decreasing production outputs.

The average rebar price has risen by RMB 17/mt ($2.4/mt) compared to December 18, while the average 6.5 mm HPB 300 wire rod price has seen the same rise. Rebar prices have dropped by RMB 3/mt compared to Friday, December 22.

During the given week, rebar and wire rod prices in the Chinese domestic market have indicated rises amid steelmakers’ halting part of their production. However, inventory of rebar and wire rod has seen certain rises due to the negative impact of snowy and rainy weather. Construction sites’ activities have been negatively affected due to the bad weather, which weakened the demand for rebar and wire rod. Cautious sentiments prevailed among market players in the traditional offseason of winter. It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.

On December 25, rebar futures contract (rb2405) offers closed at RMB 3,998/mt ($563/mt) at Shanghai Futures Exchange, increasing by RMB 65/mt ($9.2/mt) or 1.65 percent compared to December 18, while decreasing by 0.1 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 7.101