During the past week ending August 4, average Chinese domestic rebar and wire rod prices have moved down as weak demand has pushed the market into a negative trajectory again and cautious market sentiments have prevailed, even though no sharp drop is expected in the near future.
The average rebar price has decreased by RMB 53/mt ($7.4/mt) compared to July 28, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 60/mt ($8.4/mt). Rebar prices have decreased by RMB 17/mt ($2.4/mt) compared to the previous trading day, August 1.
Following previous rises, rebar and wire rod prices have moved down from their peak levels amid the slack demand from downstream users. Rebar futures prices have decreased, negatively affecting market sentiments. Moreover, the adverse weather conditions in northern China have exerted a negative impact on the demand for rebar and wire rod. The capacity utilization rates of rebar and wire rod producers have been at relatively low levels, bolstering prices to a certain degree. Some traders have started to feel cautious as regards the future prospects for the rebar and wire rod market. It is thought that rebar and wire rod prices in the Chinese domestic market will edge down in the coming week.
As of August 4, rebar futures at Shanghai Futures Exchange are standing at RMB 3,204/mt ($455/mt), decreasing by RMB 44/mt ($6.2/mt) or 1.35 percent since July 28, while down 0.28 percent compared to the previous trading day, August 1.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,250 | 455.2 | -50 | -6.6 |
| Guangzhou | 3,400 | 476.2 | -70 | -9.3 | |
| Shanghai | 3,280 | 459.4 | -40 | -5.1 | |
| Average price | 3,310.0 | 463.6 | -53 | -7.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,750 | 525.2 | -50 | -6.5 |
| Guangzhou | 3,700 | 518.2 | -80 | -10.7 | |
| Shanghai | 3,800 | 532.2 | -50 | -6.5 | |
| Average price | 3,750.0 | 525.2 | -60 | -7.9 | |
| 8 - HPB300 | Beijing | 3,530 | 494.4 | -50 | -6.5 |
| Guangzhou | 3,640 | 509.8 | -80 | -10.7 | |
| Shanghai | 3,510 | 491.6 | -50 | -6.5 | |
| Average price | 3,560.0 | 498.6 | -60 | -7.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1395
