During the week ending January 13, average prices of Chinese domestic rebar and wire rod have moved sideways, while transaction activity in the overall domestic rebar and wire rod market has been at low levels compared to the previous week.
During the given week, as the Chinese New Year holiday is drawing closer, demand for rebar and wire rod has slackened further, resulting in low market activity. Most players will leave the market by the end of this week, while steelmakers will implement maintenance works, which will exert a negative impact on both demand and supply. It is expected that rebar and wire rod prices in the Chinese domestic market will mostly move sideways in the coming week.
Nevertheless, major Chinese steelmaker Jiangsu Province-based Shagang Group has cut its offer prices for high-speed wire rod, rebar and bar-in-coil by RMB 80/mt ($11.6/mt) for the January 11-20 period.
Rebar futures have declined in the past week. On January 13, rebar futures contract (2005) offers closed at RMB 3,530/mt ($509.7/mt) at Shanghai Futures Exchange, down by 0.81 percent since January 6.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
Hebei Steel |
3,610 |
521.2 |
0 |
+3.4 |
Guangzhou |
Shaoguan Steel |
4,160 |
600.6 |
0 |
+4.0 |
|
Shanghai |
Shente |
3,750 |
541.4 |
0 |
+3.6 |
|
Average price |
- |
3,840.0 |
554.4 |
0 |
+3.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
6.5 - HPB300 |
Beijing |
Hebei Steel |
4,390 |
633.8 |
0 |
+4.2 |
Guangzhou |
Shaoguan Steel |
4,060 |
586.2 |
0 |
+3.9 |
|
Shanghai |
Shente Steel |
3,800 |
548.7 |
0 |
+3.6 |
|
Average price |
- |
4,083.3 |
589.6 |
0 |
+3.9 |
|
8 - HPB300 |
Beijing |
Hebei Steel |
4,240 |
612.2 |
0 |
+4.0 |
Guangzhou |
Shaoguan Steel |
4,000 |
577.5 |
0 |
+3.8 |
|
Shanghai |
Shente Steel |
3,800 |
548.7 |
0 |
+3.6 |
|
Average price |
- |
4,013.3 |
579.5 |
0 |
+3.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1=RMB 6.926