As of June 5, average Chinese domestic rebar and wire rod prices have moved on a rising trend compared to the previous week, indicating a rebound after the previous long-standing decline.
The average rebar price has risen by RMB 103/mt compared to May 29, while the average 6.5 mm HPB 300 wire rod price has increased by RMB 100/mt. Rebar prices have seen a rise of RMB 67/mt compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market have indicated a rebounding trend amid increasing rebar futures prices. There are hopes that the government will issue new stimuli for the real estate sector soon, which will support the construction industry. However, demand for rebar and wire rod may slacken amid the approaching rainy season, which will exert a negative impact on prices. At the same time, rebar and wire rod producers do not want to cut production, which may increase the pressure from the supply side. Moreover, coke prices have edged down further, weakening the support for rebar and wire rod prices from the cost side. However, iron ore prices increased, providing support for steel prices. It is expected that rebar and wire rod prices may fluctuate within a limited range in the coming week.
On June 5, rebar futures contract (rb2210) offers closed at RMB 3,638/mt ($513/mt) at Shanghai Futures Exchange, increasing by RMB 127/mt ($18/mt) or 3.6 percent compared to May 29, while rising by 2.1 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,750 |
528.9 |
+100 |
+11.8 |
|
Guangzhou |
3,840 |
541.6 |
+90 |
+10.3 |
|
|
Shanghai |
3,650 |
514.8 |
+120 |
+14.7 |
|
|
Average price |
3,746.7 |
528.4 |
+103 |
+12.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,350 |
613.5 |
+80 |
+8.6 |
|
Guangzhou |
4,110 |
579.7 |
+100 |
+11.5 |
|
|
Shanghai |
4,280 |
603.7 |
+120 |
+14.3 |
|
|
Average price |
4,246.7 |
599.0 |
+100 |
+11.5 |
|
|
8 - HPB300 |
Beijing |
4,170 |
588.2 |
+80 |
+8.7 |
|
Guangzhou |
4,050 |
571.2 |
+100 |
+11.6 |
|
|
Shanghai |
3,980 |
561.4 |
+120 |
+14.5 |
|
|
Average price |
4,066.7 |
573.6 |
+100 |
+11.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0904