During the past week ending September 8, average Chinese domestic rebar and wire rod prices have edged down amid the decreases seen in coke prices, which have weakened the support for steel prices from the cost side, while demand for longs has also failed to improve so far.
The average rebar price has decreased by RMB 7/mt ($1/mt) compared to September 1, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 10/mt ($1.4/mt). Rebar prices have remained stable compared to the previous trading day, September 5.
During the given week, the first round of declines has been seen in coke prices, weakening the support for rebar and wire rod prices from the cost side. Cautious sentiments have prevailed among market players amid the slack demand from downstream users. Meanwhile, inventories of rebar and wire rod have increased, exerting a negative impact on prices. Since the weather has become less hot, construction activities may gradually improve, which will positively affect market sentiments and bolster rebar and wire rod prices in the near future. It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of September 8, rebar futures at Shanghai Futures Exchange are standing at RMB 3,132/mt ($441/mt), increasing by RMB 17/mt ($2.4/mt) or 0.55 percent since September 1, while up 0.19 percent compared to the previous trading day, September 5.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,190 | 449.1 | 0 | +0.3 |
| Guangzhou | 3,280 | 461.8 | -10 | -1.1 | |
| Shanghai | 3,180 | 447.7 | -10 | -1.2 | |
| Average price | 3,216.7 | 452.9 | -7 | -0.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,670 | 516.7 | -10 | -1.1 |
| Guangzhou | 3,570 | 502.6 | -10 | -1.1 | |
| Shanghai | 3,670 | 516.7 | -10 | -1.1 | |
| Average price | 3,637 | 512.0 | -10 | -1.1 | |
| 8 - HPB300 | Beijing | 3,450 | 485.7 | -10 | -1.1 |
| Guangzhou | 3,510 | 494.2 | -10 | -1.1 | |
| Shanghai | 3,380 | 475.9 | -10 | -1.1 | |
| Average price | 3,447 | 485.2 | -10 | -1.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1029
