During the past week ending September 1, average Chinese domestic rebar and wire rod prices have moved down amid declining rebar futures and increased inventories despite previous expectations that production cuts may boost the market prices.
The average rebar price has decreased by RMB 47/mt ($6.0/mt) compared to August 25, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 40/mt ($5.0/mt). Rebar prices have decreased by RMB 17/mt ($2.4/mt) compared to the previous trading day, August 29.
During the given week, rebar and wire rod prices in the Chinese domestic market have seen further declines as the output did not fall as much as expected. Recently, inventories of rebar and wire rod have increased, exerting a negative impact on their prices. The military parade will be finished this week, which will end production halts in Tangshan and increase the output of rebar and wire rod. Since it will be the traditional peak season in September, rebar and wire rod prices will gain certain support later in September. At the same time, the rate of project funding arriving at construction sites improved significantly, reaching the highest level since mid-June this year, which will improve the demand for rebar and wire rod in the near future. It is thought that rebar and wire rod prices in the Chinese domestic market will stop going down in the coming week, but any improvement in prices will directly depend on local consumption dynamics.
As of September 1, rebar futures at Shanghai Futures Exchange are standing at RMB 3,115/mt ($439/mt), decreasing by RMB 23/mt ($3.2/mt) or 0.6 percent since August 25, while down 1.89 percent compared to the previous trading day, August 29.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,190 | 448.9 | -60 | -7.9 |
| Guangzhou | 3,290 | 462.9 | -20 | -2.2 | |
| Shanghai | 3,190 | 448.9 | -60 | -7.9 | |
| Average price | 3,223.3 | 453.5 | -47 | -6.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,680 | 517.8 | -40 | -5.0 |
| Guangzhou | 3,580 | 503.7 | -20 | -2.2 | |
| Shanghai | 3,680 | 517.8 | -60 | -7.8 | |
| Average price | 3,646.7 | 513.1 | -40 | -5.0 | |
| 8 - HPB300 | Beijing | 3,460 | 486.8 | -40 | -5.0 |
| Guangzhou | 3,520 | 495.3 | -20 | -2.2 | |
| Shanghai | 3,390 | 477.0 | -60 | -7.8 | |
| Average price | 3,456.7 | 486.4 | -40 | -5.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1072
