During the week ending September 13, average Chinese domestic rebar and wire rod prices have moved up further and at a faster pace amid increasing rebar futures prices and improved sentiments among market players due to tight supply. This happened after the implementation of more production restrictions from this week in more provinces in China.
During the given period, the average rebar price has gained RMB 193/mt, while the average wire rod price has risen by RMB 177/mt. In comparison with the previous week when rebar prices added RMB 83/mt, the rise has been more rapid in the past week, reflecting tightening supply. In addition to the provinces of Hebei and Jiangsu, steel production cuts have also started in Guangxi and Yunnan in order to lower energy consumption and cut emissions. Market sources believe that these restrictions (from 30 percent to 70 percent of full capacity) may last up to the end of this year.
During the given week, production restrictions and steelmakers’ maintenance works have exerted a positive impact on market players’ sentiments, pushing up rebar futures prices. On September 13, rebar futures contract (2105) offers closed at RMB 5,642/mt ($875/mt) at Shanghai Futures Exchange, up RMB 169/mt ($26.2/mt) or by 3.1 percent compared to September 6.
Domestic supply of rebar and wire rod will continue to be tight, which will positively affect prices in the coming weeks, sources believe. However, typhoon Chanthu has hit eastern China, which will influence construction activities and weaken the demand for rebar and wire rod to some extent. It is thought that rebar and wire rod prices will edge up slightly in the coming week.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
5,350 |
829.5 |
170 |
26.7 |
|
Guangzhou |
5,840 |
905.4 |
190 |
29.9 |
|
|
Shanghai |
5,520 |
855.8 |
220 |
34.5 |
|
|
Average price |
5,570.0 |
863.6 |
193 |
30.4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
6,380 |
989.1 |
120 |
19.1 |
|
Guangzhou |
6,130 |
950.4 |
190 |
29.9 |
|
|
Shanghai |
5,790 |
897.7 |
220 |
34.5 |
|
|
Average price |
6,100.0 |
945.7 |
177 |
27.8 |
|
|
8 - HPB300 |
Beijing |
6,160 |
955.0 |
120 |
19.0 |
|
Guangzhou |
6,070 |
941.1 |
190 |
29.9 |
|
|
Shanghai |
5,730 |
888.4 |
220 |
34.5 |
|
|
Average price |
5,986.7 |
928.2 |
177 |
27.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.4497