As of May 8, average Chinese domestic rebar and wire rod prices have moved on a downtrend compared to April 24, however, the margin of the decline is smaller compared to the previous week given the rebound seen in spot and futures market today compared to last Friday.
The average rebar price has decreased by RMB50/mt compared to April 24, while the average 6.5 mm HPB 300 wire rod price has declined by RMB33/mt. Rebar prices have seen a rise of RMB 77/mt compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market moved down first while moved up later. Following the Labor Day holiday, coke prices decreased, weakening the support for steel prices from the cost side. However, rebar futures prices have indicated a big rise of 4.16 percent on May 8, bolstering market sentiments. Buyers replenished stocks of rebar and wire rod after the Labor Day holiday, while production output has declined, resulting in inventories being consumed. “The Fengan district in Tangshan has officially announced that its 2023 steel output will not exceed the 2022 level. The whole of Tangshan will follow as soon as possible,” a representative of a Chinese mill commented regarding the price rebound. He also mentioned the slight improvement in demand.
However, the demand for rebar and wire rod is unlikely to improve significantly in the near future due to the weak performance in the real estate industry. It is expected that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week with some gradual increase possible.
On May 8, rebar futures contract (rb2210) offers closed at RMB 3,732/mt ($539/mt) at Shanghai Futures Exchange, increasing by RMB 72/mt ($10.4/mt) or 2.0 percent compared to April 28, while rose by 4.16 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,750 |
542.2 |
-20 |
-5.4 |
|
Guangzhou |
3,960 |
572.6 |
-70 |
-12.8 |
|
|
Shanghai |
3,770 |
545.1 |
-60 |
-11.2 |
|
|
Average price |
3,826.7 |
553.3 |
-50 |
-9.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,380 |
633.3 |
-20 |
-5.8 |
|
Guangzhou |
4,260 |
616.0 |
-50 |
-10.1 |
|
|
Shanghai |
4,350 |
629.0 |
-30 |
-7.3 |
|
|
Average price |
4,330.0 |
626.1 |
-33 |
-7.8 |
|
|
8 - HPB300 |
Beijing |
4,200 |
607.3 |
-20 |
-5.7 |
|
Guangzhou |
4,200 |
607.3 |
-50 |
-10.1 |
|
|
Shanghai |
4,050 |
585.6 |
-30 |
-7.1 |
|
|
Average price |
4,150.0 |
600.1 |
-33 |
-7.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.9158