During the past week ending March 23, average Chinese domestic rebar and wire rod prices have increased amid some gains in rebar futures prices and rising costs with high prices of raw material, of iron ore in particular, and increases in the coke market. However, demand has lacked strength, which has prevented prices from fluctuating.
The average rebar price has increased by RMB 13/mt ($1.9/mt) compared to March 16, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 13/mt ($1.9/mt). Rebar prices have risen by RMB 20/mt ($2.8/mt) compared to the previous trading day, March 20.
Iron ore prices have moved on an uptrend, bolstering rebar and wire rod prices from the cost side. The ongoing war in the Middle East has resulted in sharp rises in fuel prices and has increased concerns for the future. In addition, today local coke prices have posted an increase in China with futures prices for coking coal and coke surging by 11 percent and 7 percent at Dalian Commodity Exchange since Friday.
Chinese downstream users have been unwilling to conclude purchases, which has led to increasing inventories of rebar and wire rod, impacting market sentiments after some improvement in demand seen a week ago. Recession expectations have emerged amid surging crude oil prices, which will negatively affect rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.
As of March 23, rebar futures at Shanghai Futures Exchange are standing at RMB 3,154/mt ($457/mt), increasing by RMB 14/mt ($2.0/mt) or 0.4 percent since March 16, while up 0.9 percent compared to the previous trading day, March 20.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,170 | 459.2 | 10 | 1.6 |
| Guangzhou | 3,450 | 499.7 | 30 | 4.5 | |
| Shanghai | 3,180 | 460.6 | 0 | 0.1 | |
| Average price | 3,266.7 | 473.2 | 13 | 2.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,690 | 534.5 | 10 | 2.4 |
| Guangzhou | 3,750 | 543.2 | 40 | 6.7 | |
| Shanghai | 3,630 | 525.8 | -10 | -0.5 | |
| Average price | 3,690 | 534.5 | 13 | 2.9 | |
| 8 - HPB300 | Beijing | 3,470 | 502.6 | 10 | 2.3 |
| Guangzhou | 3,690 | 534.5 | 40 | 6.7 | |
| Shanghai | 3,400 | 492.5 | -10 | -0.6 | |
| Average price | 3,520 | 509.8 | 13 | 2.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.9057
