As of May 29, average Chinese domestic rebar and wire rod prices have moved down further compared to May 22 and the outlook is still bearish as demand is expected to weaken further due to rainy weather and still high production levels, even though the market expects to see stimulus measures from the government.
The average rebar price has decreased by RMB 80/mt compared to May 22, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 77/mt. Rebar prices are up RMB 10/mt compared to last Friday amid rises in futures prices on the back of stimulus expectations.
During the given week, rebar and wire rod prices in the Chinese domestic market have moved on a downward trend amid slack demand from downstream users. Meanwhile, the rainy season is approaching, which will slacken demand further and will exert a negative impact on the rebar and wire rod market. At the same time, steel production restrictions have not been implemented strictly, weakening the support for rebar and wire rod prices. Moreover, coke prices have softened, negatively affecting rebar and wire rod prices from the cost side. It is expected that rebar and wire rod prices in the Chinese domestic market will edge down in the coming week.
On May 29, rebar futures contract (rb2210) offers closed at RMB 3,511/mt ($463/mt) at Shanghai Futures Exchange, decreasing by RMB 58/mt ($8.2/mt) or 1.6 percent compared to May 22, while rising by 1.86 percent compared to the previous trading day. Rises in futures today compared to Friday have been explained by rumors that China will issue special bonds worth RMB 5 trillion to support the economy, though a number of market participants think this is doubtful.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
3,650 |
517.1 |
-50 |
-10.2 |
Guangzhou |
3,750 |
531.3 |
-90 |
-16.0 |
|
Shanghai |
3,530 |
500.1 |
-100 |
-17.2 |
|
Average price |
3,643.3 |
516.2 |
-80 |
-14.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
6.5 - HPB300 |
Beijing |
4,270 |
605.0 |
-60 |
-12.2 |
Guangzhou |
4,010 |
568.1 |
-100 |
-17.7 |
|
Shanghai |
4,160 |
589.4 |
-70 |
-13.5 |
|
Average price |
4,146.7 |
587.5 |
-77 |
-14.4 |
|
8 - HPB300 |
Beijing |
4,090 |
579.5 |
-60 |
-12.0 |
Guangzhou |
3,950 |
559.6 |
-100 |
-17.6 |
|
Shanghai |
3,860 |
546.9 |
-70 |
-13.3 |
|
Average price |
3,966.7 |
562.0 |
-77 |
-14.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0575