During the week ending May 24, average Chinese domestic rebar and wire rod prices have moved down sharply, by $86-97/mt on average depending on the product, amid significant decreases in ferrous metal futures prices in China following the government’s announcement of measures to curb the rises in commodity prices.
During the given period, the average rebar price in China has lost RMB 617/mt, while the average wire rod price has declined by RMB 547/mt.
On Monday, May 24, rebar prices have decreased by RMB 210/mt or $33/mt on average since Friday.
During the given week, rebar futures prices have moved down sharply, exerting a negative impact on rebar and wire rod prices in the Chinese domestic market. China’s central government has taken measures to curb the rapid rises in commodity prices, interviewing market participants and warning of significant punishments for “illegal acts such as reaching agreements to implement a monopoly, spreading false information, driving up prices, hoarding and other illegal activities, in accordance with the law,” the NDRC, the national planning body, stated today.
Accordingly, some producers will have to cut outputs, which may decrease rebar and wire rod availability and prices will stabilize at lower levels. Currently, more stormy weather is foreseen to hit eastern China, which may influence transportation and construction activities. However, the sharp declines in prices will likely ease in the near future, according to market sources.
On May 24, rebar futures contract (2105) offers closed at RMB 4,974/mt ($772.4/mt) at Shanghai Futures Exchange, down RMB 622/mt ($96.6/mt) or by 11.1 percent compared to May 17, signaling market players’ cautious sentiments as regards the future prospects for the rebar market following previous sharp rises.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
5,270 |
818.2 |
-570 |
-89.9 |
|
Guangzhou |
5,230 |
812.0 |
-640 |
-100.8 |
|
|
Shanghai |
4,910 |
762.3 |
-640 |
-100.7 |
|
|
Average price |
5,136.7 |
797.5 |
-617 |
-97.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
6,150 |
954.8 |
-340 |
-54.4 |
|
Guangzhou |
5,550 |
861.7 |
-680 |
-107.1 |
|
|
Shanghai |
5,450 |
846.1 |
-620 |
-97.7 |
|
|
Average price |
5,716.7 |
887.5 |
-547 |
-86.4 |
|
|
8 - HPB300 |
Beijing |
5,930 |
920.7 |
-340 |
-54.3 |
|
Guangzhou |
5,490 |
852.4 |
-680 |
-107.1 |
|
|
Shanghai |
5,400 |
838.4 |
-630 |
-99.3 |
|
|
Average price |
5,606.7 |
870.5 |
-550 |
-86.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.4408