During the past week ending May 25, average Chinese domestic rebar and wire rod prices have continued their downtrend amid slackening demand from downstream users due to widespread rainy weather. However, the outlook for steel prices is cautiously positive as gains in raw material prices may support longs quotations.
The average rebar price has decreased by RMB 27/mt ($4/mt) compared to May 18, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 17/mt ($2.5/mt). Rebar prices have risen by RMB 30/mt ($4.4/mt) compared to the previous trading day, May 22.
During the given week, rebar and wire rod prices have edged down amid sluggish demand from downstream users due to widespread rainy weather. Outdoor construction activities have been curbed in southern and eastern China, weakening support for rebar and wire rod prices. Though inventory consumption continued, the destocking pace slowed down.
Affected by a major gas explosion accident on May 22 at Liushanyu Coal Industry Co., Ltd. of Shanxi Tongzhou Group in Qinyuan County, Changzhi City, Shanxi Province, 73 coal mines across Shanxi Province have suspended production, and all 25 coal mines in Qinyuan County, with an annual capacity of 25.6 million mt, have been completely shut down. On May 25, coking coal and coke futures prices saw significant increases of 7.97 percent and 7.99 percent, exerting a positive impact on rebar futures prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up in the coming week amid support from the cost side.
As of May 25, rebar futures at Shanghai Futures Exchange are standing at RMB 3,218/mt ($470.5/mt), increasing by RMB 12/mt ($1.8/mt) or 0.4 percent since May 18, while increasing by 1.48 percent compared to the previous trading day, May 22.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,300 | 483.0 | -40 | -5.0 |
| Guangzhou | 3,500 | 512.3 | -40 | -4.9 | |
| Shanghai | 3,230 | 472.8 | 0 | 0.8 | |
| Average price | 3,343 | 489.4 | -27 | -3.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,920 | 573.8 | -20 | -1.9 |
| Guangzhou | 3,790 | 554.7 | -40 | -4.9 | |
| Shanghai | 3,660 | 535.7 | 10 | 2.4 | |
| Average price | 3,790 | 554.7 | -17 | -1.5 | |
| 8 - HPB300 | Beijing | 3,700 | 541.6 | -20 | -2.0 |
| Guangzhou | 3,730 | 546.0 | -40 | -4.9 | |
| Shanghai | 3,430 | 502.0 | 10 | 2.3 | |
| Average price | 3,620 | 529.9 | -17 | -1.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.8318
