During the past week ending January 12, average Chinese domestic rebar and wire rod prices have edged up amid increasing rebar futures prices, expectations of a relatively balanced market in January, and support from raw materials.
The average rebar price has increased by RMB 13/mt ($1.6/mt) compared to January 5, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 10/mt ($1.4/mt). Rebar prices have increased by RMB 3/mt ($0.4/mt) compared to the previous trading day, January 9.
During the given week, rebar and wire rod prices in the Chinese domestic market have edged up amid surging coking coal and coke futures prices. The increasing trend in China’s stock market following the New Year holiday has bolstered market sentiments, exerting a positive impact on rebar and wire rod prices in the Chinese domestic market. Since producers’ profitability has been at decent levels, the production of rebar and wire rod is likely to see slight rises in the near future. Demand for rebar and wire rod from downstream users may slacken during the traditional cold winter offseason, which may negatively affect prices. Currently, inventories of rebar and wire rod are at reasonable levels, which will provide some support for prices. It is expected that rebar and wire rod prices in the Chinese domestic market will edge up slightly in the coming week.
As of January 12, rebar futures at Shanghai Futures Exchange are standing at RMB 3,165/mt ($441.5/mt), increasing by RMB 61/mt ($8.7/mt) or 2.0 percent since January 5, while up 0.6 percent compared to the previous trading day, January 9.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,170 | 452.1 | 30 | 5.0 |
| Guangzhou | 3,500 | 499.2 | -10 | -0.6 | |
| Shanghai | 3,240 | 462.1 | 20 | 3.6 | |
| Average price | 3,303.3 | 471.2 | 13 | 2.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,680 | 524.9 | 40 | 6.6 |
| Guangzhou | 3,810 | 543.4 | -10 | -0.5 | |
| Shanghai | 3,700 | 527.7 | 0 | 0.9 | |
| Average price | 3,730.0 | 532.0 | 10 | 2.3 | |
| 8 - HPB300 | Beijing | 3,460 | 493.5 | 40 | 6.5 |
| Guangzhou | 3,750 | 534.9 | -10 | -0.5 | |
| Shanghai | 3,460 | 493.5 | 0 | 0.8 | |
| Average price | 3,556.7 | 507.3 | 10 | 2.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0108
