Oversupply impacts local Chinese rebar and wire rod market

Monday, 19 October 2015 13:49:31 (GMT+3)   |   Shanghai
       

During the week ending October 19, average rebar and wire rod prices have seen a decreasing trend in most local markets in China, though rebar and wire prices have followed a stable trend in southern China, while transaction activity in the overall domestic rebar and wire rod market has been at decent levels. On October 19, rebar futures contract (1601) offers closed at RMB 1,805/mt ($285/mt) at Shanghai Futures Exchange, down $8/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, demand for rebar and wire rod has been at decent levels, while downward pressures from the domestic economic situation and from oversupply in the rebar and wire rod market have negatively impacted the market. The current period is the traditional peak season for construction projects and the real estate market, but demand in the rebar and wire rod market has not indicated any significant improvement. In addition, rebar futures prices, which are considered to reflect market participants’ sentiment on the future prospects for the market, have moved on a declining trend over the past week. It is expected that rebar and wire rod prices in the Chinese domestic market will continue their downtrend 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

2,150

338

0

Beijing

Hebei Steel

1,950

307

↓50

Guangzhou

Shaoguan Steel

2,120

333

↓30

Average

-

2,073

326

↓27

Wire Rod

6.5 mm dia.

Q235

Shanghai

Pingxiang

2,130

335

↓30

Beijing

Hebei Steel

1,950

307

↓50

Guangzhou

Shaoguan Steel

2,180

343

0

Average

-

2,087

328

↓26

 
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 1,95 307 ↓50
Beijing Hebei Steel 1,86 292 ↓40
Guangzhou Shaoguan Steel 2,15 338 0
Average 1,987 312 ↓30
 
All prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.36


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