As of May 15, average Chinese domestic rebar and wire rod prices have moved down compared to May 8, but have posted rises compared to last Friday owing to expectations of government support for the economy and the real estate sector, and supported by the gradual improvement of demand.
The average rebar price has decreased by RMB 50/mt compared to May 8, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 47/mt. Rebar prices have seen an increase of RMB 34/mt compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market have continued their downtrend, though at a slower pace. The rebounding trend of rebar futures prices in the given week has provided support for rebar and wire rod prices in the spot market. Demand has been slack amid the poor performance in the real estate industry, exerting a negative impact on rebar and wire rod prices, but in comparison to April market sources said overall trading has posted some gradual improvement. At the same time, steelmakers have started to increase supply to the market and this will negatively affect the rebar and wire rod market in the near future. It is expected that rebar and wire rod prices may fluctuate within a limited range in the coming week.
On May 15, rebar futures contract (rb2210) offers closed at RMB 3,667/mt ($526/mt) at Shanghai Futures Exchange, decreasing by RMB 65/mt ($9.3/mt) or 1.74 percent compared to May 8, while rising by 2.0 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,730 |
535.5 |
-20 |
-6.7 |
|
Guangzhou |
3,900 |
559.9 |
-60 |
-12.6 |
|
|
Shanghai |
3,700 |
531.2 |
-70 |
-13.9 |
|
|
Average price |
3,776.7 |
542.2 |
-50 |
-11.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,360 |
626.0 |
-20 |
-7.3 |
|
Guangzhou |
4,190 |
601.6 |
-70 |
-14.4 |
|
|
Shanghai |
4,300 |
617.4 |
-50 |
-11.6 |
|
|
Average price |
4,283.3 |
615.0 |
-47 |
-11.1 |
|
|
8 - HPB300 |
Beijing |
4,180 |
600.1 |
-20 |
-7.1 |
|
Guangzhou |
4,130 |
593.0 |
-70 |
-14.3 |
|
|
Shanghai |
4,000 |
574.3 |
-50 |
-11.3 |
|
|
Average price |
4,103.3 |
589.1 |
-47 |
-10.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.9654