By the end of trading on March 1, market prices of 6.5 mm Q235 high speed wire rod were at RMB 3,930/mt ($576/mt), RMB 3,740/mt ($548/mt) and RMB 3,980/mt ($584/mt) in Shanghai, Beijing and Guangzhou respectively; meanwhile 20 mm HRB 335 rebar prices stood at RMB 3,650/mt ($535/mt), RMB 3,730/mt ($547/mt) and RMB 3,980/mt ($584/mt) in the above respective areas, with 20 mm HRB 400 offered at RMB 3,790/mt ($556/mt), RMB 3,830/mt ($562/mt) and RMB 4,250/mt ($623/mt) respectively.

Over the past week, long product prices in eastern China were basically on a rising trend, as traders were eager to raise prices after the festival; however, this increasing trend inspired by the traders became weak at the end of the past week. Meanwhile, prices of rebar and wire rod on the futures exchange also began to fall in the latter part of the week.

In southern China, the prices of HRB 400 in the Lecong market in Guangzhou declined by RMB 20-40/mt ($3-6/mt) compared with February 20, because of the decreased prices from Shaoguan Iron and Steel. Meanwhile, pressure from rising inventory has been increasing due to limited demand.

In northern China, rebar market prices posted the largest increase in China, due to the increasing prices from steel mills. The new prices from Hebei Iron and Steel Group and Shougang Group for March showed increases of RMB 100/mt ($15/mt) for rebar and wire rod.

As regards inventory, rebar and wire rod inventories have reached high levels, thus representing significant pressure on the future market.

On the raw materials side, the price of pig iron in China has indicated an upward movement, the trend in the domestic scrap market has not been obvious with several mills raising purchase prices of scrap while most traders are waiting to see what direction the market will follow. Meanwhile, the billet market has been on an overall rising trend, with a rise of RMB 80/mt ($12/mt) seen in the Tangshan region in Hebei Province.

In spite of high inventories, due to the reasonably positive monetary supply situation in China, the domestic longs market may vary between stability and an uptrend in the coming period.