During the past week ending September 15, average Chinese domestic rebar and wire rod prices have fluctuated within a limited range amid the slight changes seen in rebar futures prices. Though supply has increased, demand has also posted a small improvement, though not enough to push prices up.
The average rebar price has remained stable compared to September 8, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 3/mt. Rebar prices have increased by RMB 20/mt ($2.8/mt) compared to the previous trading day, September 12.
During the given week, stocks of rebar and wire rod increased amid the increasing capacity utilization rates on producers’ side, exerting a negative impact on their prices. Market sentiments improved in the spot market, while transaction activities of low-priced resources have been more active. Total real estate investments in China amounted to RMB 6.0309 trillion ($0.85 trillion) in the January-August period this year, down 12.9 percent year on year, 0.9 percentage points faster than the decline recorded in the first seven months this year, according to China's National Bureau of Statistics (NBS). The poor performance in real estate industry weakened market sentiments.
According to market rumors, miners in Xinjiang Province will likely reduce production, pushing up coking coal and coke futures prices on September 15, with increases of 4.4 percent and 4.62 percent compared to the previous day, respectively, bolstering rebar and wire rod prices firmly from the cost side. 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 September 15, rebar futures at Shanghai Futures Exchange are standing at RMB 3,136/mt ($441/mt), increasing by RMB 4/mt ($2.4/mt) or 0.1 percent since September 8, while up 0.93 percent compared to the previous trading day, September 12.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,180 | 447.5 | -10 | -1.6 |
| Guangzhou | 3,300 | 464.4 | 20 | 2.6 | |
| Shanghai | 3,170 | 446.1 | -10 | -1.6 | |
| Average price | 3,216.7 | 452.7 | 0 | -0.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,670 | 516.5 | 0 | -0.2 |
| Guangzhou | 3,590 | 505.2 | 20 | 2.6 | |
| Shanghai | 3,660 | 515.1 | -10 | -1.6 | |
| Average price | 3,640.0 | 512.2 | 3 | 0.3 | |
| 8 - HPB300 | Beijing | 3,450 | 485.5 | 0 | -0.2 |
| Guangzhou | 3,530 | 496.8 | 20 | 2.6 | |
| Shanghai | 3,370 | 474.2 | -10 | -1.6 | |
| Average price | 3,450.0 | 485.5 | 3 | 0.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1056
