During the past week ending June 15, average Chinese domestic rebar and wire rod prices have fluctuated within a limited range with a limited negative bias over the past week, amid increasing rebar futures prices in the last few days and the ongoing slack demand from downstream users.
The average rebar price has decreased by RMB 10/mt ($1.5/mt) compared to June 8, while the average 6.5 mm HPB 300 wire rod price has remained stable. Rebar prices have increased by RMB 14/mt ($2/mt) compared to the previous trading day, June 12.
During the given week, rebar and wire rod prices have fluctuated within a limited range amid the sluggish demand from downstream users, while prices of raw materials, including coking coal and coke, have bolstered longs prices firmly. “The Chinese authorities have announced a three-year plan to lower carbon emissions, so local steel prices are mostly supported. The market is stuck between higher costs and slow demand, and so far this logic has not changed,” a Chinese trader noted.
The capacity utilization rates of steelmakers are at relatively high levels, resulting in increasing production outputs of rebar and wire rod. The apparent consumption of rebar and wire rod has declined, ending the destocking activity in the market and exerting a negative impact on prices. The widespread rainy weather has negatively affected construction activities, which will slacken the demand for rebar and wire rod. It is thought that rebar and wire rod prices in the Chinese domestic market will edge down slightly in the coming week.
As of June 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,187/mt ($468/mt), increasing by RMB 30/mt ($4.4/mt) or 0.95 percent since June 8, while decreasing by 0.44 percent compared to the previous trading day, June 12.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,240 | 475.8 | 20 | 3.7 |
| Guangzhou | 3,420 | 502.3 | -10 | -0.7 | |
| Shanghai | 3,200 | 470.0 | 20 | 3.7 | |
| Average price | 3,286.7 | 482.7 | 10 | 2.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,850 | 565.4 | 0 | 0.9 |
| Guangzhou | 3,700 | 543.4 | -20 | -2.1 | |
| Shanghai | 3,630 | 533.1 | 20 | 3.8 | |
| Average price | 3,726.7 | 547.3 | 0 | 0.9 | |
| 8 - HPB300 | Beijing | 3,630 | 533.1 | 0 | 0.9 |
| Guangzhou | 3,640 | 534.6 | -20 | -2.1 | |
| Shanghai | 3,400 | 499.3 | 20 | 3.7 | |
| Average price | 3,556.7 | 522.3 | 0 | 0.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.8088
