During the past week ending January 5, average Chinese domestic rebar and wire rod prices have been stable with some small softening in some regions due to decreasing rebar futures prices.
The average rebar price has decreased by RMB 7/mt ($1/mt) compared to December 29, while the average 6.5 mm HPB 300 wire rod price has remained stable.
During the given week, rebar and wire rod prices in the Chinese domestic market have fluctuated within a limited range amid the slack demand from downstream users. The increasing deliveries of rebar and wire rod to the spot market during the New Year holiday resulted in rising inventories, exerting a negative impact on prices. Steelmakers’ capacity utilization rates have increased slightly, which may increase the gap between supply and demand.
Moreover, China has indicated that it will strengthen macro-control over the real estate sector, and continuously improve and stabilize expectations in the real estate market, while players in futures market have not yet responded to this development and are still waiting for specific measures. 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 January 5, rebar futures at Shanghai Futures Exchange are standing at RMB 3,104/mt ($441.5/mt), decreasing by RMB 26/mt ($3.7/mt) or 0.8 percent since December 29.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,140 | 447.1 | -10 | -0.8 |
| Guangzhou | 3,510 | 499.8 | 0 | 0.7 | |
| Shanghai | 3,220 | 458.5 | -10 | -0.8 | |
| Average price | 3,290.0 | 468.5 | -7 | -0.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,640 | 518.3 | -10 | -0.7 |
| Guangzhou | 3,820 | 543.9 | 0 | 0.8 | |
| Shanghai | 3,700 | 526.8 | 10 | 2.2 | |
| Average price | 3,720.0 | 529.7 | 0 | 0.8 | |
| 8 - HPB300 | Beijing | 3,420 | 487.0 | -10 | -0.7 |
| Guangzhou | 3,760 | 535.4 | 0 | 0.8 | |
| Shanghai | 3,460 | 492.7 | 10 | 2.1 | |
| Average price | 3,546.7 | 505.0 | 0 | 0.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.023
