During the past week ending April 13, average Chinese domestic rebar and wire rod prices have moved down amid the declines in rebar futures prices and the lack of expectations of a rebound in demand, while the escalation of the war in the Middle East has again raised concerns regarding further increases in fuel and transportation costs.
The average rebar price has decreased by RMB 20/mt ($2.9/mt) compared to March 30, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 7/mt ($1.0/mt). Rebar prices have remained stable compared to the previous trading day, April 10.
During the given week, rebar and wire rod prices have edged down as demand from downstream users has not been improving as well as market players had expected. Firm raw material prices have bolstered rebar and wire rod prices from the cost side, with iron ore prices exceeding $105/mt CFR and posting only a minimal decline last week, while the second round of price increases is awaited in the local coke market.
US President Trump has announced that the US military will blockade the Strait of Hormuz, targeting all major Iranian ports (which were still partially functioning), starting from April 13, driving oil prices higher again and increasing fears globally of inflation, which could negatively impact the global economy and commodity markets. Cautious sentiments have prevailed among market players. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week. Hopes of some rebound in the local Chinese market in April have again been postponed.
As of April 13, rebar futures at Shanghai Futures Exchange are standing at RMB 3,100/mt ($451/mt), decreasing by RMB 39/mt ($5.7/mt) or 1.2 percent since March 30, while up 0.19 percent compared to the previous trading day, April 10.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,140 | 457.3 | -40 | -2.1 |
| Guangzhou | 3,440 | 501.0 | 0 | 4.1 | |
| Shanghai | 3,130 | 455.9 | -20 | 0.8 | |
| Average price | 3,236.7 | 471.4 | -20 | 0.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,680 | 536.0 | -10 | 2.9 |
| Guangzhou | 3,750 | 546.2 | 10 | 5.9 | |
| Shanghai | 3,590 | 522.9 | -20 | 1.3 | |
| Average price | 3,673.3 | 535.0 | -7 | 3.4 | |
| 8 - HPB300 | Beijing | 3,460 | 503.9 | -10 | 2.6 |
| Guangzhou | 3,690 | 537.4 | 10 | 5.8 | |
| Shanghai | 3,360 | 489.4 | -20 | 1.1 | |
| Average price | 3,503.3 | 510.2 | -7 | 3.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.8657
