During the week ending February 17, average Chinese domestic rebar and wire rod prices have edged down further, while transaction activity in the overall domestic rebar and wire rod market has still been at low levels as downstream users have not resumed production yet due to the disruption of transportation and difficulties preventing workers from returning to work. As a result, Chinese suppliers have been forced to accelerate export trading, offering very competitive prices.
Rebar export prices in deals from China dropped to $425/mt FOB actual weight basis last week. There are reports of even additional discounts being provided by suppliers. In the wire rod segment, Chinese sellers have also dropped their export prices and have managed to sign contacts at $470/mt CFR Philippines and at $460-465/mt CFR Vietnam, which corresponds to $450-460/mt FOB, sources said. “Wire rod sales are even better than HRC,” a Chinese trader told SteelOrbis.
Average local rebar prices in China have declined by RMB 70/mt over the past week or by $9.6/mt. The decrease in the local wire rod segment has been somewhat lower - by RMB 37/mt or $4.8/mt. Domestic inventories of rebar and wire rod have indicated big rises over the past week, exerting a negative impact on the market. Some players in the local rebar and wire rod market have been incurring losses due to the relatively high prices of their stocks. It is thought that rebar and wire rod prices in the Chinese domestic market will continue their downward trend in the near future.
Rebar futures prices in China have declined in the past week. On February 17, rebar futures contract (2005) offers closed at RMB 3,427/mt ($491/mt) at Shanghai Futures Exchange, up RMB 122/mt or by 3.7 percent since February 10, signaling that market players’ sentiments have started to improve as they consider that prices may have hit the bottom.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
3,410 |
488.5 |
-90 |
-12.5 |
Guangzhou |
3,920 |
561.6 |
-120 |
-16.7 |
|
Shanghai |
3,440 |
492.8 |
0 |
+0.4 |
|
Average price |
3,590 |
514.3 |
-70 |
-9.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
6.5 - HPB300 |
Beijing |
4,220 |
604.6 |
-60 |
-8.1 |
Guangzhou |
3,950 |
565.9 |
-50 |
-6.7 |
|
Shanghai |
3,530 |
505.7 |
0 |
+0.4 |
|
Average price |
3,900 |
558.7 |
-37 |
-4.8 |
|
8 - HPB300 |
Beijing |
4,070 |
583.1 |
-60 |
-8.1 |
Guangzhou |
3,890 |
557.3 |
-50 |
-6.7 |
|
Shanghai |
3,530 |
505.7 |
0 |
+0.4 |
|
Average price |
3,830 |
548.7 |
-37 |
-4.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.9795