During the past week ending May 12, average Chinese domestic rebar and wire rod prices have moved down amid decreasing rebar futures prices and the continuing high levels of supply. However, today, May 12, the mood has improved after the easing of the trade war between the US and China.
The average rebar price has decreased by RMB 47/mt ($6.5/mt) compared to April 28, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 33/mt ($4.6/mt). Rebar prices have increased by RMB 17/mt ($2.4/mt) compared to the previous trading day, May 9.
During the given week, rebar and wire rod prices in the Chinese domestic market have moved on a downtrend amid the prevailing bearish sentiments among market players. Following the Labor Day holiday, demand for rebar and wire rod improved slightly, while sentiments then became cautious again amid declining rebar futures prices. The supply of rebar and wire rod has been rather high, even despite some slight decline from two weeks ago. On May 12, the US-China trade negotiations made substantial progress, which will exert a positive impact on the rebar and wire rod market. The US and China have announced a 90-day pause on "reciprocal" tariffs starting from May 14, which will lead to the US tariffs on Chinese imports retreating from 145 percent to 30 percent, while Chinese tariffs on US imports will fall from 125 percent to 10 percent.
It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week with a possible positive bias.
As of May 12, rebar futures at Shanghai Futures Exchange are standing at RMB 3,082/mt ($428/mt), decreasing by RMB 47/mt ($6.5/mt) or 1.5 percent since April 28, while up 1.52 percent compared to the previous trading day, May 9.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,170 | 439.9 | -30 | -4.3 |
| Guangzhou | 3,390 | 470.4 | -90 | -12.7 | |
| Shanghai | 3,190 | 442.6 | -20 | -3.0 | |
| Average price | 3,250.0 | 451.0 | -47 | -6.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,730 | 517.6 | 0 | -0.2 |
| Guangzhou | 3,640 | 505.1 | -90 | -12.7 | |
| Shanghai | 3,730 | 517.6 | -10 | -1.6 | |
| Average price | 3,700.0 | 513.4 | -33 | -4.8 | |
| 8 - HPB300 | Beijing | 3,550 | 492.6 | 0 | -0.2 |
| Guangzhou | 3,580 | 496.7 | -90 | -12.7 | |
| Shanghai | 3,440 | 477.3 | -10 | -1.6 | |
| Average price | 3,523.3 | 488.9 | -33 | -4.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.2066
