Chinese domestic rebar and wire rod prices skyrocket to highest level in 2020

During the week ending today, November 9, average Chinese domestic rebar and wire rod prices have moved up very sharply, mainly amid the rapidly rising futures prices today and with the support of decreasing outputs and inventories in China. Demand for rebar in northern China has shown signs of weakening, though in southern and eastern China demand is still at decent levels.

Over the past week, the average rebar price has increased by RMB 173/mt, while the average wire rod price has risen by RMB 187/mt. Compared with the previous week, demand for rebar and wire rod has improved slightly, while inventories have decreased, bolstering prices. Currently, blast furnace capacity utilization rates are still at high levels, though they will likely edge down in the future amid production restrictions during the winter season. The overall outlook in the Chinese domestic market for the near future is still positive despite the recent sharp increases in prices.

On November 9, rebar futures contract (2101) offers closed at RMB 3,859/mt ($585/mt) at Shanghai Futures Exchange, up RMB 140/mt ($21/mt) or by 3.8 percent since November 2 and up by 2.28 percent compared to the previous trading day, signaling market players’ bullish sentiments towards the future prospects for the market.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Rebar prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.6123