As of October 30, average Chinese domestic rebar and wire rod prices have seen significant rises compared to October 23 owing to the stimulus measures approved by the government, which are expected to support construction in the fourth quarter and next year.
The average rebar price has increased by RMB 87/mt ($12/mt) compared to October 23, while the average 6.5 mm HPB 300 wire rod price has also seen a rise of RMB 87/mt. Rebar prices have risen by RMB 27/mt ($3.8/mt) compared to October 27.
During the given week, market sentiments have improved amid the good news of China’s issuance of additional special bonds worth RMB 1 trillion for 2023 in the October-December period this year. On October 30, rebar futures prices have moved up by 4.7 percent compared to October 23, which has exerted a positive impact on rebar and wire rod prices in the spot market. At the same time, inventory of rebar and wire rod has been at relatively low levels, bolstering prices as well. Though some steel producers have been incurring losses, most of them have been unwilling to cut outputs for the moment, and so supply may not see big decreases in the near future, even despite the environmental restrictions in Hebei, announced last week. On the other hand, demand may improve further in the coming period on the back of the stimulus measures. Moreover, the high levels of raw material prices will push up rebar and wire rod prices from the cost side. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up further in the coming week.
On October 30, rebar futures contract (rb2401) offers closed at RMB 3,740/mt ($521/mt) at Shanghai Futures Exchange, increasing by RMB 168/mt ($23.4/mt) or 4.7 percent compared to October 23, while rising by 1.25 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,780 |
526.6 |
80 |
11.2 |
|
Guangzhou |
3,910 |
544.7 |
70 |
9.8 |
|
|
Shanghai |
3,790 |
528.0 |
110 |
15.4 |
|
|
Average price |
3,826.7 |
533.1 |
87 |
12.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,430 |
617.2 |
80 |
11.2 |
|
Guangzhou |
4,240 |
590.7 |
60 |
8.4 |
|
|
Shanghai |
4,340 |
604.6 |
120 |
16.8 |
|
|
Average price |
4,336.7 |
604.2 |
87 |
12.2 |
|
|
8 - HPB300 |
Beijing |
4,250 |
592.1 |
80 |
11.2 |
|
Guangzhou |
4,180 |
582.3 |
60 |
8.4 |
|
|
Shanghai |
4,040 |
562.8 |
120 |
16.8 |
|
|
Average price |
4,156.7 |
579.1 |
87 |
12.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1781