Over the past week ended on June 19, average Chinese domestic rebar and wire rod prices have moved up further amid rising futures prices and slightly more optimistic sentiments after the People’s Bank of China cut of the reserve requirement ratio.
The average rebar price has risen by RMB 70/mt compared to June 12, while the average 6.5 mm HPB 300 wire rod price has increased by RMB 70/mt. Rebar prices have seen a drop of RMB 4/mt compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market have moved on a rising trend amid speculations about improved consumption, though actual demand has been slack. Steelmakers have been reluctant to implement production restrictions, and this has resulted in rises in rebar and wire rod outputs compared to the previous week. The increasing iron ore and coke prices have bolstered rebar and wire rod prices from the cost side. Data issued by China’s National Bureau of Statistics showed that economic development has not been as good as market players had expected. However, market participants have been quite optimistic as regards the future prospects for the economy in the third quarter as policymakers may issue more stimulus measures. It is thought that rebar and wire rod prices in the Chinese domestic market will likely continue their increasing trend in the coming week, though at a slower pace.
On June 19, rebar futures contract (rb2210) offers closed at RMB 3,752/mt ($527/mt) at Shanghai Futures Exchange, increasing by RMB 100/mt ($14/mt) or 2.7 percent compared to June 12, while decreasing by 0.74 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
3,800 |
533.7 |
60 |
8.5 |
Guangzhou |
3,900 |
547.8 |
50 |
7.1 |
|
Shanghai |
3,770 |
529.5 |
100 |
14.1 |
|
Average price |
3,823.3 |
537.0 |
70 |
9.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
6.5 - HPB300 |
Beijing |
4,400 |
618.0 |
60 |
8.5 |
Guangzhou |
4,170 |
585.7 |
40 |
5.7 |
|
Shanghai |
4,410 |
619.4 |
110 |
15.5 |
|
Average price |
4,326.7 |
607.7 |
70 |
9.9 |
|
8 - HPB300 |
Beijing |
4,220 |
592.7 |
60 |
8.5 |
Guangzhou |
4,110 |
577.2 |
40 |
5.7 |
|
Shanghai |
4,110 |
577.2 |
110 |
15.5 |
|
Average price |
4,146.7 |
582.4 |
70 |
9.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1201