As of November 11, average Chinese domestic rebar and wire rod prices have moved on a downtrend amid decreasing rebar futures prices. The reaction of the market to the latest stimuli measures announced by the government on Friday has been negative as again expectations were too high, with the reality lagging behind.
The average rebar price has decreased by RMB 70/mt ($9.7/mt) compared to November 4, while the average 6.5 mm HPB 300 wire rod price has seen a drop of RMB 27/mt ($3.8/mt). Rebar prices have decreased by RMB 70/mt ($9.7/mt) compared to the previous trading day, November 8.
During the given week, rebar and wire rod prices in the Chinese domestic market have continued their downward trend amid the sluggish demand from downstream users. Before the 12th Session of the Standing Committee of the 14th National People’s Congress (NPC), market expectations for the new stimuli were high, while the actual outcome has been weaker than expected, resulting in declines in prices. On November 8, Lan Fo’an, China’s finance minister, stated that China will add RMB 6 trillion ($0.84 trillion) to refinance local government debts up to the end of 2026. Also, the limit for issuance of special bonds for local governments will increase from RMB 29.52 trillion ($4.1 trillion) to RMB 35.52 trillion ($5 trillion), which will release potential consumption. “The debt swap will not translate directly into growth," Reuters cited an ANZ analyst as saying.
It is expected that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week, with some further negative bias.
As of November 11, rebar futures at Shanghai Futures Exchange are standing at RMB 3,331/mt ($484/mt), decreasing by RMB 94/mt ($13.1/mt) or 2.74 percent since November 4, while down 2.35 percent compared to the previous trading day, November 8.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
3,350 |
466.6 |
-170 |
-27.7 |
Guangzhou |
3,700 |
515.4 |
0 |
-4.3 |
|
Shanghai |
3,450 |
480.6 |
-40 |
-9.6 |
|
Average price |
3,500.0 |
487.5 |
-70 |
-13.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
6.5 - HPB300 |
Beijing |
3,930 |
547.4 |
-20 |
-7.3 |
Guangzhou |
3,940 |
548.8 |
-30 |
-8.8 |
|
Shanghai |
3,930 |
547.4 |
-30 |
-8.7 |
|
Average price |
3,933.3 |
547.9 |
-27 |
-8.3 |
|
8 - HPB300 |
Beijing |
3,750 |
522.4 |
-20 |
-7.1 |
Guangzhou |
3,880 |
540.5 |
-30 |
-8.7 |
|
Shanghai |
3,640 |
507.0 |
-30 |
-8.4 |
|
Average price |
3,756.7 |
523.3 |
-27 |
-8.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1786
