As of August 26, average Chinese domestic rebar and wire rod prices have moved up amid the increasing rebar futures prices after the Chinese government forbids the capacity replacement program and there are talks about some better market balance after weeks of visible oversupply. The export market has also followed.
The average rebar price has risen by RMB 77/mt ($11/mt) compared to August 19, while the average 6.5 mm HPB 300 wire rod price has seen an increase of RMB 70/mt ($10/mt). Rebar prices have edged up by RMB 33/mt ($4.6/mt) compared to the previous trading day, August 23.
During the given week, rebar and wire rod prices in the Chinese domestic market rebounded from the previous low levels. Steelmakers implemented production cuts in the given period, and traders’ inventories have been at relatively low levels, bolstering rebar and wire rod prices firmly. Market sentiments improved, positively affecting the rebar and wire rod market. “Today similar story happened as last Wednesday, and it might change the thoughts in the market for the near future trend,” a trader said. Some downstream users actively made inquiries, stimulating transaction activities accordingly. Moreover, China’s Ministry of Industry and Information Technology (MIIT) issued a notice regarding the halting of steel capacity replacement on August 23, increasing the bullishness in the market. It is expected that rebar and wire rod prices in the Chinese domestic market will move up further in the coming week.
As of August 26, rebar futures at Shanghai Futures Exchange are standing at RMB 3,264/mt ($459/mt), increasing by RMB 108/mt ($15/mt) or 3.4 percent since August 19, while up 2.64 percent compared to the previous trading day, August 23.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
3,160 |
444.2 |
+40 |
+7.3 |
Guangzhou |
3,330 |
468.1 |
+100 |
+15.8 |
|
Shanghai |
3,200 |
449.8 |
+90 |
+14.4 |
|
Average price |
3,230.0 |
454.0 |
+77 |
+12.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
6.5 - HPB300 |
Beijing |
3,780 |
531.3 |
+90 |
+14.7 |
Guangzhou |
3,530 |
496.2 |
+60 |
+10.3 |
|
Shanghai |
3,780 |
531.3 |
+60 |
+10.5 |
|
Average price |
3,696.7 |
519.6 |
+70 |
+11.8 |
|
8 - HPB300 |
Beijing |
3,600 |
506.0 |
+90 |
+14.6 |
Guangzhou |
3,470 |
487.8 |
+60 |
+10.3 |
|
Shanghai |
3,490 |
490.6 |
+60 |
+10.3 |
|
Average price |
3,520.0 |
494.8 |
+70 |
+11.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1139
