Average Chinese domestic rebar and wire rod prices have edged down during the past two weeks ended January 10 amid the slack demand in the traditional offseason and the rises in crude steel production reported for late December. However, they have fluctuated in a very limited range over the past week due to high costs.
In the past two weeks, the average rebar price has decreased by RMB 63/mt, while the average wire rod price has declined by RMB 87/mt. At the same time, compared to January 3, rebar prices have inched up by RMB 6/mt.
During the given two weeks, rebar and wire rod prices have moved down amid the sluggish demand in the winter season. However, rebar futures prices have indicated a rebounding trend, exerting a positive impact on rebar and wire rod prices. As the Chinese New Year holiday is approaching, there will be limited time for construction activities, which will slacken the demand for rebar and wire rod further. But, on the other hand, market players will build up stocks ahead of the long holiday, which is what traders expected and this will bolster rebar and wire rod prices to some extent.
There have been no visible declines in Chinese longs prices over the past week due to high raw material prices and increases in local billet prices. According to SteelOrbis’ data, ex-warehouse billet prices in China have added RMB 102/mt over the week ending on January 10.
It is expected that wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
On January 10, rebar futures contract (rb2205) offers closed at RMB 4,492/mt ($706/mt) at Shanghai Futures Exchange, up RMB 185/mt ($29.1/mt) or by 4.3 percent compared to that recorded on December 27.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Two-week change |
Two-week change |
|
25 - HRB400 |
Beijing |
4,570 |
718.0 |
-50 |
-7.4 |
|
Guangzhou |
4,960 |
779.3 |
-110 |
-16.8 |
|
|
Shanghai |
4,730 |
743.1 |
-30 |
-4.2 |
|
|
Average price |
4,753.3 |
746.8 |
-63 |
-9.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Two-week change (RMB/mt) |
Two-week change |
|
6.5 - HPB300 |
Beijing |
5,680 |
892.4 |
-150 |
-23.0 |
|
Guangzhou |
5,180 |
813.8 |
-110 |
-16.8 |
|
|
Shanghai |
5,350 |
840.5 |
-20 |
-2.6 |
|
|
Average price |
5,403.3 |
848.9 |
-93 |
-14.1 |
|
|
8 - HPB300 |
Beijing |
5,460 |
857.8 |
-150 |
-23.0 |
|
Guangzhou |
5,120 |
804.4 |
-110 |
-16.8 |
|
|
Shanghai |
5,040 |
791.8 |
0 |
+0.5 |
|
|
Average price |
5,206.7 |
818.0 |
-87 |
-13.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.365