During the week ending November 22, average Chinese domestic rebar and wire rod prices have indicated increases amid rising rebar futures prices and the improved sentiments among market players after the government voiced its intention to support economic growth by facilitating the supply of credit to the real estate sector, which has slowed down over the past few months.
During the given period, the average rebar price has gained RMB 57/mt, while the average wire rod prices have also risen, by RMB 57-60/mt. All these increases have been seen on Monday, while over the past week prices had remained under pressure.
During the given week, rebar and wire rod prices have indicated a rebounding trend amid the decreases seen in output and inventory levels. Rebar futures prices have seen rises, also bolstering rebar and wire rod prices in the spot market. Reports of the banks making more credit available to the real estate industry will stimulate the demand for rebar and wire rod. However, a new round of cold weather has hit China, which will exert a negative impact on the rebar and wire rod market. It is thought that rebar and wire rod prices may move sideways in the coming week or post a slight increase.
On November 22, rebar futures contract (2201) offers closed at RMB 4,300/mt ($672.4/mt) at Shanghai Futures Exchange, up RMB 162/mt ($25.3/mt) or by 3.9 percent compared to that recorded on November 15, showing market players’ improved sentiments towards the prospect for the future rebar and wire rod market.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change($/mt) |
|
25 - HRB400 |
Beijing |
4,580 |
716.2 |
+80 |
+12.0 |
|
Guangzhou |
5,100 |
797.5 |
+40 |
+5.6 |
|
|
Shanghai |
4,740 |
741.2 |
+50 |
+7.2 |
|
|
Average price |
4,806.7 |
751.6 |
+57 |
+8.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change($/mt) |
|
6.5 - HPB300 |
Beijing |
5,710 |
892.9 |
+90 |
+13.4 |
|
Guangzhou |
5,340 |
835.0 |
+50 |
+7.2 |
|
|
Shanghai |
5,430 |
849.1 |
+40 |
+5.6 |
|
|
Average price |
5,493.3 |
859.0 |
+60 |
+8.7 |
|
|
8 - HPB300 |
Beijing |
5,490 |
858.5 |
+90 |
+13.4 |
|
Guangzhou |
5,280 |
825.6 |
+50 |
+7.2 |
|
|
Shanghai |
5,110 |
799.1 |
+30 |
+4.1 |
|
|
Average price |
5,293.3 |
827.7 |
+57 |
+8.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.3952