Local Chinese longs prices down slightly, outlook cautiously positive after Sunday’s meeting

Monday, 09 December 2024 16:51:23 (GMT+3)   |   Shanghai

Over the past week, average Chinese domestic rebar and wire rod prices have moved down amid the slack demand from downstream users. At the same time, prices failed to move today, December 9, as the major government economic meeting was just held on December 8, with some analysts being disappointed, while some said that more time is needed to see real changes and the new direction of the market.

The average rebar price has decreased by RMB 17/mt ($2.4/mt) compared to December 2, while the average 6.5 mm HPB 300 wire rod price has seen a drop of RMB 23/mt ($3.2/mt). Rebar prices have remained stable compared to the previous trading day, December 6.

During the given week, rebar and wire rod prices in the Chinese domestic market have moved down slightly as demand from downstream users has been slack. Production of rebar and wire rod has been lowered due to the environmental protection measures in northern China. Supply and demand remain in a balanced situation at weak levels. Inventory of rebar and wire rod has fluctuated within a limited range, which will affect prices. Since China has stated it will implement a “moderately loose” monetary policy in 2025, changing its monetary policy stance for the first time since 2011, market sentiments will be firmly supported. It is expected that rebar and wire rod prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.

As of December 9, rebar futures at Shanghai Futures Exchange are standing at RMB 3,330/mt ($463/mt), increasing by RMB 3/mt ($0.4/mt) or 0.09 percent since December 2, while up 0.03 percent compared to the previous trading day, December 6.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

Rebar prices in local markets

Spec. (mm) - Category

City

Price (RMB/mt)

Price
($/mt)

Weekly change
(RMB/mt)

Weekly change
($/mt)

25 - HRB400

Beijing

3,270

455.0

0

0.0

Guangzhou

3,610

502.3

-10

-1.4

Shanghai

3,400

473.1

-40

-5.6

Average price

3,426.7

476.8

-17

-2.3

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

Spec. (mm) - Category

City

Price

(RMB/mt)

Price ($/mt)

Weekly

change (RMB/mt)

Weekly change
($/mt)

6.5 - HPB300

Beijing

3,720

517.6

-20

-2.8

Guangzhou

3,860

537.1

-10

-1.4

Shanghai

3,920

545.4

-40

-5.6

Average price

3,833.3

533.4

-23

-3.2

8 - HPB300

Beijing

3,540

492.6

-20

-2.8

Guangzhou

3,800

528.7

-10

-1.4

Shanghai

3,630

505.1

-40

-5.6

Average price

3,656.7

508.8

-23

-3.2

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 7.187


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