In the week ending August 30, inventories of rebar and wire rod have continued to decline in the Chinese market, just as in previous weeks. At the weekend, long steel prices in the local market have indicated a rebound on the back of raw material prices. Overall during the past week, however, prices have registered a minor softening compared with the previous week. As of August 30, the average prices of long steel products in the main Chinese cities are as follows:
Product name | Specification | Category | Average price (RMB/mt) | Price ($/mt) | Weekly change ($/mt) |
6.5 mm | Q235 | 4,207 | 620 | -2 | |
20 mm | HRB 335 | 4,097 | 603 | -3 | |
20 mm | HRB 400 | 4,243 | 625 | -4 |
In China's three main steel markets, i.e., Shanghai, Beijing and Guangzhou, the prices of Q235 grade 6.5 mm size high speed wire rod now respectively stand at RMB 4,180/mt ($616/mt), RMB 4,200/mt ($619/mt) and RMB 4,240/mt ($624/mt), with HRB 335 grade 20 mm rebar prices respectively at RMB 3,930/mt ($579/mt), RMB 4,150/mt ($611/mt) and RMB 4,210/mt ($620/mt). Meanwhile, HRB 400 grade 20 mm rebar is priced at RMB 4,030/mt ($594/mt), RMB 4,270/mt ($629/mt) and RMB 4,430/mt ($652/mt) in the above respective markets. All prices are ex-mill and include 17 percent VAT.
With fewer arrivals from mills, in addition to weak transaction activity, market inventory has been on the decline recently. Some rebounds in prices were observed in most Chinese regions towards the weekend, especially in the wire rod market. Given the support from raw material costs combined with the approaching peak season, no big decreases are expected for the market in the coming period.
On the export side, ex-China BS 4449 boron-added rebar offers have been at the level of $620/mt FOB for the overseas market, including the 13 percent tax rebate. Meanwhile, the export price of Chinese SAE 1008 5.5 mm wire rod materials stand at $620/mt FOB, including nine percent tax rebate.