As of September 18, average Chinese domestic rebar and wire rod prices have moved up compared to September 11, supported by a gradual rise in futures prices, some hopes for better demand, and improved economic data. However, market sources still view the current market situation as being far from positive as the signals from the real estate market are still negative.
The average rebar price has increased by RMB 63/mt ($8.8/mt) compared to September 11, while the average 6.5 mm HPB 300 wire rod price has seen an increase of RMB 43/mt ($6/mt). Rebar prices have risen by RMB 16/mt ($2.2/mt) compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market have moved up amid the positive economic data issued by the National Bureau of Statistics (NBS). Market sentiment has improved, exerting a positive impact on rebar and wire rod prices. At the same time, market players expect for better demand from downstream users in the near future. However, the property sector in China has not shown signs of improvement yet, with the major developers still having payment issues and with investment in real estate in August indicating a decline. It is expected that rebar and wire rod prices in the Chinese domestic market will edge up in the coming week, but only moderately.
On September 18, rebar futures contract (rb2401) offers closed at RMB 3,842/mt ($536/mt) at Shanghai Futures Exchange,increasing by RMB 83/mt ($11.6/mt) compared to September 11, while rising by 0.68 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,790 |
528.3 |
110 |
18.2 |
|
Guangzhou |
3,960 |
552.0 |
20 |
5.9 |
|
|
Shanghai |
3,810 |
531.1 |
60 |
11.3 |
|
|
Average price |
3,853.3 |
537.1 |
63 |
11.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,460 |
621.7 |
100 |
17.4 |
|
Guangzhou |
4,250 |
592.4 |
-10 |
2.0 |
|
|
Shanghai |
4,320 |
602.2 |
40 |
9.0 |
|
|
Average price |
4,343.3 |
605.4 |
43 |
9.4 |
|
|
8 - HPB300 |
Beijing |
4,280 |
596.6 |
100 |
17.3 |
|
Guangzhou |
4,190 |
584.1 |
-10 |
1.9 |
|
|
Shanghai |
4,020 |
560.4 |
40 |
8.7 |
|
|
Average price |
4,163.3 |
580.3 |
43 |
9.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1736