During the week ending May 25, in the Chinese domestic market rebar and wire rod prices have indicated a downward trend, while overall transaction activity for rebar and wire rod has improved compared to the previous week though it remains at low levels. On May 25, rebar futures contract (1510) offers closed at RMB 2,347/mt ($378/mt) at Shanghai Futures Exchange, almost remaining stable week on week. Average domestic rebar and wire rod prices in China's local main markets are presented in the following tables.
During the given week, consumption from construction sites has seen a certain improvement, resulting in increased transaction activity for rebar and wire rod. However, the improvement has not been sufficient to change the bearish mood among traders in the rebar and wire rod market. Due to insufficient confidence and pressures from the supply side, rebar and wire rod prices have continued their downtrend. Currently, rebar and wire rod market prices are close to production cost levels and so there is limited room for further downward movement. However, weather is getting hotter and this will negatively impact demand and prices. It is expected that rebar and wire rod prices in the Chinese domestic market will follow a slight downtrend in the coming week.
Rebar prices in local markets
Product name | Specification (mm) | Category | City | Price (RMB/mt) | Price | Weekly change |
25 | HRB400 | BeiJing | 2,170 | 349 | ↓30 | |
Guangzhou | 2,530 | 407 | ↓90 | |||
Shanghai | 2,220 | 357 | ↓40 | |||
Average price | 2,306 | 371 | ↓53 |
Wire rod prices in local markets
Product name | Specification (mm) | Category | City | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) |
6.5 | HPB300 | BeiJing | 2,380 | 383 | ↓60 | |
Guangzhou | 2,520 | 405 | ↓50 | |||
Shanghai | 2,350 | 378 | ↓30 | |||
Average price | 2,416 | 389 | ↓47 | |||
8 | HPB300 | BeiJing | 2,380 | 383 | ↓60 | |
Guangzhou | 2,480 | 399 | ↓60 | |||
Shanghai | 2,350 | 378 | ↓40 | |||
Average price | 2,403 | 387 | ↓53 |
Prices include 17 percent VAT ($1 = RMB 6.21)