During the past week ending July 27, average Chinese domestic rebar prices have edged down amid decreasing rebar futures prices and the ongoing sluggish demand from downstream users. Even though there have been more production curbs announced towards the end of this month, the overall outlook has remained bearish for the near future.
The average rebar price has decreased by RMB 7/mt ($1.0/mt) compared to July 20, while the average 6.5 mm HPB 300 wire rod price has also declined by RMB 7/mt ($1.0/mt). Rebar prices have increased by RMB 7/mt ($1.0/mt) compared to the previous trading day, July 24.
During the given week, rebar and wire rod prices in the Chinese domestic market have edged down slightly amid small increases in supply to the market. The hot summer temperatures have reduced the demand for rebar and wire rod, weakening the support for prices. Meanwhile, iron ore prices come under downward pressure, exerting a negative impact on rebar and wire rod prices from the cost side. At the same time, coke prices have indicated decreases, negatively affecting the rebar and wire rod market. Despite the production curbs in Tangshan, the major steelmaking hub in north China, announced for July 25-29, the ongoing slack demand may drag down rebar and wire rod prices further. It is thought that rebar and wire rod prices in the Chinese domestic market will likely soften in the coming week.
As of July 27, rebar futures at Shanghai Futures Exchange are standing at RMB 3,078/mt ($453/mt), decreasing by RMB 18/mt ($2.7/mt) or 0.6 percent since July 20, while increasing by 0.16 percent compared to the previous trading day, July 24.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,130 | 460.9 | -10 | -1.2 |
| Guangzhou | 3,330 | 490.4 | 0 | 0.3 | |
| Shanghai | 3,100 | 456.5 | -10 | -1.2 | |
| Average price | 3,186.7 | 469.2 | -7 | -0.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,740 | 550.7 | -20 | -2.6 |
| Guangzhou | 3,620 | 533.1 | 0 | 0.3 | |
| Shanghai | 3,570 | 525.7 | 0 | 0.3 | |
| Average price | 3,643.3 | 536.5 | -7 | -0.7 | |
| 8 - HPB300 | Beijing | 3,520 | 518.3 | -20 | -2.6 |
| Guangzhou | 3,560 | 524.2 | 0 | 0.3 | |
| Shanghai | 3,350 | 493.3 | 0 | 0.3 | |
| Average price | 3,476.7 | 512.0 | -7 | -0.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.7911
