As of July 24, average Chinese domestic rebar and wire rod prices have continued their uptrend since, even though weather conditions have still not been very supportive, demand has increased a little, while production restrictions in Tangshan and government measures to support the economy have bolstered sentiments and spot prices.
The average rebar price has increased by RMB 37/mt compared to July 17, while the average 6.5 mm HPB 300 wire rod price has also seen a rise of RMB 37/mt. Rebar prices have indicated an increase of RMB 17/mt compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market have moved on an upward trend amid improved construction activities as the rainy weather conditions have diminished a little. However, typhoon Doksuri may hit China again this week, which will likely exert a negative impact on demand for rebar and wire rod.
At the same time, another round of production restrictions will be implemented in Tangshan, Hebei Province, a major steelmaking hub in China, by the end of the month, which will reduce the supply of rebar and wire rod and provide support for prices.
In addition, the National Development and Reform Commission announced on Monday that the government will support private investments in transportation, water conservation, clean energy and infrastructure projects, which may also bolster steel demand
It is thought that in the coming week rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range with some slight increases.
On July 24, rebar futures contract (rb2210) offers closed at RMB 3,793/mt ($531/mt) at Shanghai Futures Exchange, increasing by RMB 106/mt ($14.8/mt) or 2.9 percent compared to July 17, while rising by 0.37 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,740 |
523.4 |
20 |
1.9 |
|
Guangzhou |
3,910 |
547.2 |
30 |
3.3 |
|
|
Shanghai |
3,720 |
520.6 |
60 |
7.5 |
|
|
Average price |
3,790.0 |
530.4 |
37 |
4.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,380 |
613.0 |
30 |
3.2 |
|
Guangzhou |
4,200 |
587.8 |
30 |
3.2 |
|
|
Shanghai |
4,290 |
600.4 |
50 |
6.0 |
|
|
Average price |
4,290.0 |
600.4 |
37 |
4.1 |
|
|
8 - HPB300 |
Beijing |
4,200 |
587.8 |
30 |
3.2 |
|
Guangzhou |
4,140 |
579.4 |
30 |
3.2 |
|
|
Shanghai |
3,990 |
558.4 |
50 |
6.1 |
|
|
Average price |
4,110.0 |
575.2 |
37 |
4.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.145