During the week ending March 9, average Chinese domestic rebar and wire rod prices moved up first but softened later in the week. As a result, rebar prices have posted a slight RMB 10/mt increase on average over the past week, up $5.4/mt on US dollar basis. Longs prices have edged up in the Shanghai market, but have edged down in Beijing and Guangzhou, while transaction activity in the overall domestic rebar and wire rod market is still at low levels as demand from downstream users has not recovered to the levels the market had expected.
During the given week, inventories of rebar and wire rod have increased further, exerting a negative impact on product prices. Meanwhile, steelmakers’ outputs have risen slightly.
Though rebar futures increased last week, on Monday, March 9 rebar futures contract (2005) offers closed at RMB 3,439/mt ($496.5/mt) at Shanghai Futures Exchange, up RMB 17/mt ($2.5/mt) or by 0.5 percent since March 2, while sentiment has weakened on Monday. Futures prices indicated an upward trend first and then a decline, signaling market players’ unstable sentiment as regards the future prospects for the market, against a backdrop of China’s effective measures to stimulate the resumption of production and the spread of the coronavirus in the global market.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
3,310 |
477.9 |
-10 |
2.3 |
Guangzhou |
3,780 |
545.8 |
-10 |
2.9 |
|
Shanghai |
3,420 |
493.8 |
50 |
11.1 |
|
Average price |
3,503.3 |
505.8 |
10 |
5.4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
6.5 - HPB300 |
Beijing |
4,150 |
599.2 |
-20 |
1.9 |
Guangzhou |
3,850 |
555.9 |
-20 |
1.5 |
|
Shanghai |
3,510 |
506.8 |
50 |
11.2 |
|
Average price |
3,836.7 |
554.0 |
3 |
4.8 |
|
8 - HPB300 |
Beijing |
3,930 |
567.4 |
-20 |
1.6 |
Guangzhou |
3,790 |
547.2 |
-20 |
1.4 |
|
Shanghai |
3,510 |
506.8 |
50 |
11.2 |
|
Average price |
3,743.3 |
540.5 |
3 |
4.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.926