During the past week ending April 7, average Chinese domestic rebar and wire rod prices have declined amid decreasing futures prices as the market mood has remained negative due to the escalation of trade tensions.
The average rebar price has decreased by RMB 53/mt ($7.4/mt) compared to March 31, while the average 6.5 mm HPB 300 wire rod price has seen a drop of RMB 37/mt ($5.1/mt). Rebar prices have decreased by RMB 50/mt ($7.0/mt) compared to the previous trading day, April 3.
During the given week, rebar and wire rod prices have moved down as there was no stock replenishment ahead of the Tomb Sweeping Day holiday. Though inventories of rebar and wire rod decreased, the pace of the decline slowed down. Moreover, the US tariffs are exerting a negative impact on market sentiments. In response, China’s State Council Tariff Commission announced that it will impose 34 percent additional tariffs on all imports from the US as of April 10. It is thought that rebar and wire rod prices in the Chinese domestic market will edge down further in the coming week, though, if demand rebounds slowly, the price decreases could be limited.
As of April 7, rebar futures at Shanghai Futures Exchange are standing at RMB 3,083/mt ($428/mt), decreasing by RMB 76/mt ($10.6/mt) or 2.4 percent since March 31, while down 2.59 percent compared to the previous trading day, April 3.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,190 | 443.2 | -50 | -8.2 |
| Guangzhou | 3,450 | 479.3 | -60 | -9.7 | |
| Shanghai | 3,140 | 436.2 | -50 | -8.2 | |
| Average price | 3,260.0 | 452.9 | -53 | -8.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) | Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,700 | 514.0 | +20 | +1.4 |
| Guangzhou | 3,700 | 514.0 | -80 | -12.6 | |
| Shanghai | 3,670 | 509.9 | -50 | -8.4 | |
| Average price | 3,690.0 | 512.6 | -37 | -6.5 | |
| 8 - HPB300 | Beijing | 3,520 | 489.0 | +20 | +1.4 |
| Guangzhou | 3,640 | 505.7 | -80 | -12.6 | |
| Shanghai | 3,380 | 469.6 | -50 | -8.3 | |
| Average price | 3,513.3 | 488.1 | -37 | -6.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.198
