During the past week ending June 16, average Chinese domestic rebar and wire rod prices have moved down further amid the slack demand caused by the widespread rainy weather, even though the price fall has slowed down, market sources agree that this is not a sign for trend reversal.
The average rebar price has decreased by RMB 13/mt ($1.8/mt) compared to June 9, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 23/mt ($3.2/mt). Rebar prices have remained stable compared to the previous trading day, June 13.
During the given week, rebar and wire rod prices have edged down amid the widespread rainy weather, which exerted a negative impact on construction activities and weakened the demand for longs. There were limited rebar and wire rod resources arriving at the spot market in the given week, resulting in a relatively tight supply in the market, bolstering their prices to a certain degree. However, the rainy weather will continue in the near future, which will negatively affect the demand for rebar and wire rod. It is thought that rebar and wire rod prices in the Chinese domestic market will indicate further declines in the coming week.
As of June 16, rebar futures at Shanghai Futures Exchange are standing at RMB 2,990/mt ($414/mt), increasing by RMB 9/mt ($1.3/mt) or 0.35 percent since June 9, while up 0.98 percent compared to the previous trading day, June 13.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,180 | 443.0 | 20 | 3.2 |
| Guangzhou | 3,180 | 443.0 | -40 | -5.1 | |
| Shanghai | 3,060 | 426.2 | -20 | -2.4 | |
| Average price | 3,140.0 | 437.4 | -13 | -1.4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,670 | 511.2 | -20 | -2.3 |
| Guangzhou | 3,440 | 479.2 | -30 | -3.7 | |
| Shanghai | 3,580 | 498.7 | -20 | -2.3 | |
| Average price | 3,563.3 | 496.4 | -23 | -2.8 | |
| 8 - HPB300 | Beijing | 3,460 | 482.0 | -50 | -6.5 |
| Guangzhou | 3,380 | 470.8 | -30 | -3.7 | |
| Shanghai | 3,290 | 458.3 | -20 | -2.3 | |
| Average price | 3,376.7 | 470.4 | -33 | -4.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1855