During the past week ending July 28, average Chinese domestic rebar and wire rod prices have continued their uptrend amid increasing rebar futures prices and improved market sentiments owing to both the government campaign to fight low-priced competition and the push from costs. On Monday, however, longs prices have softened, following the declines in coking coal and coke futures prices.
The average rebar price has increased by RMB 43/mt ($6/mt) compared to July 21, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 53/mt ($7.4/mt). Rebar prices have decreased by RMB 40/mt ($5.6/mt) compared to the previous trading day, July 25.
During the given week, rebar and wire rod prices moved up first while edging down later, though still rising compared to one week ago.
The main driver for the rises in longs prices over the past week has been the sharp increase in coking coal and coke futures prices. But today, futures prices have eased, so it is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
Meanwhile, China has formulated specific rules for competition for the first time, which will bolster market sentiments.
Since steelmakers’ profitability has been at a relatively high level, some of them considered increasing their outputs of rebar and wire rod, exerting a negative impact on prices. The typhoon and the heavy rains may slacken the demand for rebar and wire rod to a certain degree. This may result in an increase in inventories.
As of July 28, rebar futures at Shanghai Futures Exchange are standing at RMB 3,248/mt ($455/mt), increasing by RMB 24/mt ($3.4/mt) or 0.7 percent since July 21, while down 2.05 percent compared to the previous trading day, July 25.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,300 | 461.7 | 40 | 5.9 |
| Guangzhou | 3,470 | 485.5 | 20 | 3.1 | |
| Shanghai | 3,320 | 464.5 | 70 | 10.1 | |
| Average price | 3,363.3 | 470.6 | 43 | 6.4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,800 | 531.7 | 70 | 10.2 |
| Guangzhou | 3,780 | 528.9 | 20 | 3.2 | |
| Shanghai | 3,850 | 538.7 | 70 | 10.2 | |
| Average price | 3,810.0 | 533.1 | 53 | 7.8 | |
| 8 - HPB300 | Beijing | 3,580 | 500.9 | 70 | 10.1 |
| Guangzhou | 3,720 | 520.5 | 20 | 3.2 | |
| Shanghai | 3,560 | 498.1 | 70 | 10.1 | |
| Average price | 3,620.0 | 506.5 | 53 | 7.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1467
