During the week ending May 10, Chinese domestic rebar and wire rod prices have moved up sharply amid big rises in ferrous metal futures prices and increasing bullishness in the market.
The average rebar price has gained RMB 953/mt compared to April 26 or two weeks ago before the Labor Day holiday, while the average wire rod price has gained RMB 997/mt. The sharpest increase has been seen today, May 10, with rebar prices skyrocketing by RMB 627/mt or $97/mt since last Friday.
During the given week, rebar futures prices have hit new historical highs, exerting a positive impact on rebar and wire rod prices. The expected expansion of production restrictions, the peak season for construction activities and the high levels of iron ore prices have all bolstered domestic longs prices in China. However, the rapid price rises are exerting strong pressure on downstream users’ finances. It is thought that rebar and wire rod prices may increase further, but market players are also worried about possible intervention by the government.
On May 10, rebar futures contract (2105) offers closed at RMB 6,012/mt ($933/mt) at Shanghai Futures Exchange, up RMB 340/mt ($52.8/mt) or by 5.99 percent compared to May 7, signaling market players’ bullish sentiments as regards the future prospects for the rebar market.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
6,290 |
976.3 |
1,090 |
175.1 |
|
Guangzhou |
6,250 |
970.0 |
950 |
153.5 |
|
|
Shanghai |
6,050 |
939.0 |
820 |
133.3 |
|
|
Average price |
6,196.7 |
961.8 |
953 |
154.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
6,830 |
1,060.1 |
1,000 |
161.9 |
|
Guangzhou |
6,620 |
1,027.5 |
1,080 |
174.0 |
|
|
Shanghai |
6,540 |
1,015.1 |
920 |
149.2 |
|
|
Average price |
6,663.3 |
1,034.2 |
1,000 |
161.7 |
|
|
8 - HPB300 |
Beijing |
6,610 |
1,025.9 |
1,000 |
161.6 |
|
Guangzhou |
6,560 |
1,018.2 |
1,080 |
173.9 |
|
|
Shanghai |
6,500 |
1,008.8 |
910 |
147.7 |
|
|
Average price |
6,556.7 |
1,017.6 |
997 |
161.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.4425