During the past week ending March 17, average Chinese domestic rebar and wire rod prices have edged down despite some rises seen on Thursday and Friday of last week. The decline in rebar futures prices has resumed this Monday.
The average rebar price has decreased by RMB 10/mt ($1.4/mt) compared to March 10, while the average 6.5 mm HPB 300 wire rod price has also seen a drop, of RMB 7/mt ($1/mt). Rebar prices have decreased by RMB 24/mt ($3.3/mt) compared to the previous trading day, March 14.
During the given week, rebar and wire rod prices in the Chinese domestic market have edged down slightly amid the generally decreasing rebar futures prices. There have been limited inquiries from buyers amid the prevailing cautious sentiments. Despite the rumors of production cut swirling around in the rebar and wire rod market, actual demand has been the key factor affecting prices in the spot market.
Since the weather is becoming warmer and warmer, construction activities are expected to rebound and bolster the demand for rebar and wire rod. Meanwhile, the People’s Bank of China (PBOC) announced on March 13 that it would cut interest rates and the reserve ratio at the right moment, while market players think the reserve ratio cut may come first in March, which will positively affect market sentiments. It is thought that rebar and wire rod prices in the Chinese domestic market will edge up slightly in the coming week.
As of March 17, rebar futures at Shanghai Futures Exchange are standing at RMB 3,217/mt ($460/mt), decreasing by RMB 3/mt ($0.4/mt) or 0.1 percent since March 10, while down 1.23 percent compared to the previous trading day, March 14.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,260 | 454.7 | 0 | 0.3 |
| Guangzhou | 3,540 | 493.8 | -20 | -2.5 | |
| Shanghai | 3,230 | 450.6 | -10 | -1.1 | |
| Average price | 3,343.3 | 466.4 | -10 | -1.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) | Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,760 | 524.5 | 10 | 1.7 |
| Guangzhou | 3,810 | 531.5 | -20 | -2.5 | |
| Shanghai | 3,760 | 524.5 | -10 | -1.1 | |
| Average price | 3,776.7 | 526.8 | -7 | -0.6 | |
| 8 - HPB300 | Beijing | 3,580 | 499.4 | 10 | 1.7 |
| Guangzhou | 3,750 | 523.1 | -20 | -2.5 | |
| Shanghai | 3,470 | 484.0 | -10 | -1.1 | |
| Average price | 3,600.0 | 502.2 | -7 | -0.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1688
