During the past week ending May 18, average Chinese domestic rebar and wire rod prices have moved down due to some negative changes in rebar futures prices seen today, reflecting some easing in demand.
The average rebar price has decreased by RMB 50/mt ($7.3/mt) compared to May 11, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 33/mt ($4.8/mt). Rebar prices have decreased by RMB 7/mt ($1.0/mt) compared to the previous trading day, May 15.
During the given week, rebar and wire rod prices have moved down amid slackening demand from downstream users. Meanwhile, iron ore prices have seen decreases, weakening support for rebar and wire rod prices from the cost side. At the same time, the pace of inventory restocking has slowed, exerting a negative impact on rebar and wire rod prices. In the January-April period this year, total fixed asset investments (FAI) (excluding rural households) in China amounted to RMB 14.1293 trillion ($2.1 trillion), down 1.6 percent year on year, compared to a year-on-year rise of 4.0 percent recorded in the same period last year, as announced by China's National Bureau of Statistics (NBS), negatively affecting the rebar and wire rod market. It is thought that rebar and wire rod prices in the Chinese domestic market may soften in the coming week.
As of May 18, rebar futures at the Shanghai Futures Exchange are standing at RMB 3,206/mt ($469/mt), decreasing by RMB 80/mt ($11.7/mt) or 2.4 percent since May 11, while decreasing by 1.32 percent compared to the previous trading day, May 15.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,340 | 488.0 | -70 | -10.0 |
| Guangzhou | 3,540 | 517.2 | -40 | -5.6 | |
| Shanghai | 3,230 | 471.9 | -40 | -5.6 | |
| Average price | 3,370 | 492.4 | -50 | -7.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,940 | 575.7 | -30 | -4.1 |
| Guangzhou | 3,830 | 559.6 | -30 | -4.1 | |
| Shanghai | 3,650 | 533.3 | -40 | -5.6 | |
| Average price | 3,807 | 556.2 | -33 | -4.6 | |
| 8 - HPB300 | Beijing | 3,720 | 543.5 | -30 | -4.1 |
| Guangzhou | 3,770 | 550.8 | -30 | -4.1 | |
| Shanghai | 3,420 | 499.7 | -40 | -5.6 | |
| Average price | 3,637 | 531.4 | -33 | -4.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.8435
