Local Chinese longs prices rebound slightly, rises limited by high outputs

As of April 8, average Chinese domestic rebar and wire rod prices have indicated a rebounding trend amid the slowly improving demand after the holiday late last week.

The average rebar price has increased by RMB 33/mt ($4.6/mt) compared to April 1, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 37/mt ($5.2/mt). Rebar prices have edged down by RMB 3/mt compared to Wednesday, April 3.  

During the given week, rebar and wire rod prices in the Chinese domestic market have seen a rebounding trend amid the slowly improving demand from downstream users. Raw material prices have decreased, positively affecting steelmakers’ profitability and so they have been unwilling to reduce outputs, while activities at construction sites have also improved. Inventory of rebar and wire rod has decreased, exerting a positive impact on prices. However, they are still high and strong production activities are limiting price increases. It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

As of April 8, rebar futures at Shanghai Futures Exchange are standing at RMB 3,560/mt ($505mt), increasing by RMB 104/mt ($14.6/mt) or 3.0 percent since April 1, while up 1.45 percent compared to the previous trading day, April 3.  

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 7.0947