During the past week ending January 19, average Chinese domestic rebar and wire rod prices have edged down amid decreasing rebar futures prices, some easing of raw material prices and limited demand. The outlook is rather stable.
The average rebar price has decreased by RMB 20/mt ($2.8/mt) compared to January 12, while the average 6.5 mm HPB 300 wire rod price has also declined by RMB 20/mt ($2.8/mt). Rebar prices have decreased by RMB 14/mt ($2/mt) compared to the previous trading day, January 16.
During the given week, rebar and wire rod prices in the Chinese domestic market have seen declines amid the decreasing trend seen in commodity prices, following the previous big rises. Market sentiments have been negatively affected by the downtrend in the financial market. The good news is that the production of rebar has decreased slightly, easing the pressure on prices from the supply side. Since a strong wave of cold weather is due to hit China, demand for rebar might slacken due to the slowdown in construction activities, which will weaken the support for rebar and wire rod prices. Since the Chinese New Year holiday (February 14-23) is approaching, market players expect replenishments of raw material stocks, which may bolster rebar and wire rod prices to a certain degree from the cost side. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of January 19, rebar futures at Shanghai Futures Exchange are standing at RMB 3,140/mt ($441.5/mt), decreasing by RMB 25/mt ($3.6/mt) or 0.8 percent since January 12, while down 1.04 percent compared to the previous trading day, January 16.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,160 | 451.1 | -10 | -1.0 |
| Guangzhou | 3,480 | 496.8 | -20 | -2.4 | |
| Shanghai | 3,210 | 458.2 | -30 | -3.9 | |
| Average price | 3,283 | 468.7 | -20 | -2.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,650 | 521.1 | -30 | -3.8 |
| Guangzhou | 3,790 | 541.0 | -20 | -2.4 | |
| Shanghai | 3,690 | 526.8 | -10 | -1.0 | |
| Average price | 3,710 | 529.6 | -20 | -2.4 | |
| 8 - HPB300 | Beijing | 3,430 | 489.7 | -30 | -3.9 |
| Guangzhou | 3,730 | 532.5 | -20 | -2.4 | |
| Shanghai | 3,460 | 493.9 | 0 | 0.4 | |
| Average price | 3,540 | 505.4 | -17 | -1.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0028
