Local Chinese longs resume uptrend after last week’s positive announcements

As of May 20, average Chinese domestic rebar and wire rod prices have moved on an uptrend amid increasing rebar futures prices and decreasing inventory levels, following several government announcements last week aimed at supporting the struggling real estate sector.  

The average rebar price has increased by RMB 50/mt ($7/mt) compared to May 13, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 57/mt ($8/mt). Rebar prices have edged up by RMB 16/mt compared to the previous trading day, May 17.

During the given week, rebar and wire rod prices in the Chinese domestic market have increased and inventory levels have declined amid the improved demand from downstream users. Recently, China issued several stimulus policies for the real estate industry, aiming to boost buyers’ purchases, which exerted a positive impact on market sentiments. Some sellers have been unwilling to sell, bolstering rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up in the coming week.

As of May 20, rebar futures at Shanghai Futures Exchange are standing at RMB 3,735/mt ($519/mt), increasing by RMB 49/mt ($6.9/mt) or 1.3 percent since May 13, while up 0.67 percent compared to the previous trading day, May 17.  

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 7.1042