As of September 25, average Chinese domestic rebar and wire rod prices have moved down both week on week and from the previous day, affected by the decline seen in futures prices, tight liquidity and lower iron ore prices. This has happened even though the long holiday is approaching, which usually push up prices amid restocking.
The average rebar price has declined by RMB 37/mt ($5.2/mt) compared to September 18, while the average 6.5 mm HPB 300 wire rod price has seen a decrease of RMB 33/mt ($4.6/mt). Rebar prices have declined by RMB 20/mt ($2.8/mt) compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market moved on a downtrend amid decreasing rebar futures prices. Production restrictions have not been implemented as strictly as market players expected, which has contributed to firm supply. Demand for rebar and wire rod has improved to a certain degree over the past week, resulting in declines in inventories, though today some market sources said that activity has been from moderate to low. Moreover, iron ore prices have moved down over the past few days, which weakens the support for rebar and wire rod prices from the cost side. It is thought that rebar and wire rod prices in the Chinese domestic market will likely increase slightly by the end of the week as there may be some stock replenishments before the long holiday, though only minimal price changes are expected.
On September 25, rebar futures contract (rb2401) offers closed at RMB 3,716/mt ($518/mt) at Shanghai Futures Exchange, decreasing by RMB 126/mt ($17.6/mt) compared to September 18, while down 1.51 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,740 |
521.4 |
-50 |
-6.9 |
|
Guangzhou |
3,940 |
549.3 |
-20 |
-2.7 |
|
|
Shanghai |
3,770 |
525.6 |
-40 |
-5.5 |
|
|
Average price |
3,816.7 |
532.1 |
-37 |
-5.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,420 |
616.2 |
-40 |
-5.5 |
|
Guangzhou |
4,230 |
589.7 |
-20 |
-2.7 |
|
|
Shanghai |
4,280 |
596.7 |
-40 |
-5.5 |
|
|
Average price |
4,310.0 |
600.9 |
-33 |
-4.6 |
|
|
8 - HPB300 |
Beijing |
4,240 |
591.1 |
-40 |
-5.5 |
|
Guangzhou |
4,170 |
581.3 |
-20 |
-2.7 |
|
|
Shanghai |
3,980 |
554.9 |
-40 |
-5.5 |
|
|
Average price |
4,130.0 |
575.8 |
-33 |
-4.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1727