During the week ending September 5, Chinese domestic rebar prices have softened slightly in Guangzhou, though remaining stable in other regions, while domestic wire rod prices have mostly moved up slightly, though remaining stable in Guangzhou. Transaction activity in the domestic rebar and wire rod market is still at low levels. On September 5, rebar futures contract (1701) offers closed at RMB 2,436/mt ($365/mt) at Shanghai Futures Exchange, down $6/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
During the given week, due to environmental protection measures around the period of the G20 Summit in Hangzhou, steelmakers and traders have increased their offer prices for rebar and wire rod. Meanwhile, as construction sites have halted activities in the provinces of Jiangsu, Zhejiang and Anhui as well as in Shanghai against the backdrop of the summit, demand for long steel has been weak, resulting in a wait-and-see stance among traders. However, since September is traditionally the peak season for market activity, demand will likely improve. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week.
Wire rod prices in local Chinese market
Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
Wire Rod | 8 mm dia. | Q235 | Shanghai | Pingxiang | 2,720 | 407 | ↑20 |
Beijing | Hebei Steel | 2,720 | 407 | ↑40 | |||
Guangzhou | Shaoguan Steel | 2,670 | 400 | 0 | |||
Average | - | 2,704 | 405 | ↑21 | |||
Wire Rod | 6.5 mm dia. | Q235 | Shanghai | Pingxiang | 2,720 | 407 | ↑20 |
Beijing | Hebei Steel | 2,720 | 407 | ↑40 | |||
Guangzhou | Shaoguan Steel | 2,700 | 404 | 0 | |||
Average | - | 2,714 | 406 | ↑21 |
All prices include 17 percent VAT and all prices are ex-warehouse
Rebar prices in local Chinese market
Product name | Spec. | Category | City | Steel plant/origin | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
HRB400 Rebar | 20 mm dia. | HRB400 | Shanghai | Pingxiang | 2,500 | 374 | 0 |
Beijing | Hebei Steel | 2,470 | 370 | 0 | |||
Guangzhou | Shaoguan Steel | 2,730 | 409 | ↓20 | |||
Average | - | 2,567 | 384 | ↓6 |
All prices include 17 percent
$1 = RMB 6.68