During the week ending November 29, average Chinese domestic rebar and wire rod prices have indicated further rises amid better sentiments among market players, firm demand and higher billet prices. But the outlook is mixed due to the lack of optimistic consumption perspectives for the winter months and the emergence of a new variant of Covid-19.
During the given period, the average rebar price has gained RMB 73/mt, while the average wire rod price has also increased, by RMB 63/mt. At the same time, the rebar price has posted a slight decline of RMB 10/mt since last Thursday.
During the given week, rebar and wire rod prices in China have continued their rebounding trend amid improved sentiments. The production of rebar has increased slightly, but is still at a relatively low level. Moreover, the tightness of funds will ease for the real estate market and exert a positive impact on the demand for rebar and wire rod.
Currently, the winter heating season and the Winter Olympic Games have caused steelmakers in northern China to scale back their production plans, which may bolster rebar and wire rod prices to some extent. But at the same time, demand in the cold winter season will be slack and this may offset the positive effect from lower production. Demand for rebar last Friday and today Monday is already slower than seen earlier last week. At the same time, the existence of the new Omicron variant of Covid-19 has been announced by the WHO, also putting pressure on sentiment. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
On November 29, rebar futures contract (2205) (the main futures contract has shifted from rb2201 to rb 2205) offers closed at RMB 4,145/mt ($649/mt) at Shanghai Futures Exchange, up RMB 181/mt ($28.3/mt) or by 4.6 percent compared to November 22.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
4,730 |
740.6 |
150 |
24.4 |
|
Guangzhou |
5,160 |
807.9 |
60 |
10.4 |
|
|
Shanghai |
4,750 |
743.7 |
10 |
2.5 |
|
|
Average price |
4,880.0 |
764.1 |
73 |
12.4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
5,850 |
915.9 |
140 |
23.0 |
|
Guangzhou |
5,410 |
847.0 |
70 |
12.0 |
|
|
Shanghai |
5,410 |
847.0 |
-20 |
-2.1 |
|
|
Average price |
5,556.7 |
870.0 |
63 |
11.0 |
|
|
8 - HPB300 |
Beijing |
5,630 |
881.5 |
140 |
23.0 |
|
Guangzhou |
5,350 |
837.6 |
70 |
12.0 |
|
|
Shanghai |
5,090 |
796.9 |
-20 |
-2.1 |
|
|
Average price |
5,356.7 |
838.7 |
63 |
11.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.3872