During the past week ending December 29, average Chinese domestic rebar and wire rod prices have fluctuated within a limited range amid the slightly increasing rebar futures prices, but limited demand. Outlook for the first half of January is from stable to slightly negative, while if demand improved, prices may rebound in late January.
The average rebar price has increased by RMB 7/mt ($1/mt) compared to December 22, while the average 6.5 mm HPB 300 wire rod price has decreased by RMB 3/mt ($0.4/mt). Rebar prices have risen by RMB 7/mt compared to the previous trading day, December 26.
Since the New Year holiday (January 1-3) is approaching, demand for rebar and wire rod has been slack, while this trend might continue after the holiday during the traditional cold winter offseason, which will weaken the support to their prices. Cautious sentiments prevailed among market players, which will exert a negative impact on rebar and wire rod prices. Market players expected for stock replenishments from downstream users later in January, which will provide certain support to rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will continue to fluctuate within a limited range in the coming week.
As of December 29, rebar futures at Shanghai Futures Exchange are standing at RMB 3,130/mt ($445/mt), rising by RMB 4/mt ($0.6/mt) or 0.1 percent since December 22, while up 0.71 percent compared to the previous trading day, December 26.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,150 | 447.9 | 20 | 4.4 |
| Guangzhou | 3,510 | 499.1 | 0 | 1.7 | |
| Shanghai | 3,230 | 459.3 | 0 | 1.6 | |
| Average price | 3,297 | 468.7 | 7 | 2.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,650 | 519.0 | 0 | 1.8 |
| Guangzhou | 3,820 | 543.2 | 0 | 1.8 | |
| Shanghai | 3,690 | 524.7 | -10 | 0.4 | |
| Average price | 3,720 | 528.9 | -3 | 1.3 | |
| 8 - HPB300 | Beijing | 3,430 | 487.7 | 0 | 1.7 |
| Guangzhou | 3,760 | 534.6 | 0 | 1.8 | |
| Shanghai | 3,450 | 490.5 | -10 | 0.3 | |
| Average price | 3,547 | 504.3 | -3 | 1.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0331
