During the week ending March 29, average Chinese domestic rebar and wire rod prices have moved up sharply amid surging billet prices, construction steel demand improvements and good expectations for the near future.
Over the past week, the average rebar price has gained RMB 103/mt, while the average wire rod price has risen by RMB 97/mt. Moreover, compared to last Friday’s level, the rebar price is RMB 83/mt or $13/mt higher, according to SteelOrbis’ data, with not only sentiments but also fundamentals having improved.
During the given week, rebar futures prices in China have edged up, exerting a positive impact on rebar and wire rod prices in the spot market. The production restrictions in Tangshan will reduce the supply of billet, which will provide support for long steel prices. Meanwhile, demand for rebar and wire rod has been better due to good weather conditions. It is expected that rebar and wire rod prices in the Chinese domestic market will edge up further in the coming week supported by demand.
On March 29, rebar futures contract (2105) offers closed at RMB 4,971/mt ($760/mt) at Shanghai Futures Exchange, up RMB 208/mt ($32/mt) or by 4.4 percent compared to March 22 and up by 2.56 percent compared to the previous trading day (March 27), signaling market players’ bullish sentiments as regards the future market prospects.
Export longs prices from China have increased, following the local price increases, though interest in sales has remained very limited due to expected tax rebate cut. According to SteelOrbis’ data, the offer price level for rebar from Chinese mills has increased by $15/mt on average to $710-720/mt FOB, while ex-China wire rod prices have gained $20/mt to $730-750/mt FOB, week on week.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
4,820 |
736.8 |
160 |
21.9 |
|
Guangzhou |
5,020 |
767.3 |
80 |
9.6 |
|
|
Shanghai |
4,840 |
739.8 |
70 |
8.1 |
|
|
Average price |
4,893.3 |
748.0 |
103 |
13.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
5,450 |
833.1 |
140 |
18.5 |
|
Guangzhou |
5,240 |
801.0 |
80 |
9.4 |
|
|
Shanghai |
5,000 |
764.3 |
70 |
8.0 |
|
|
Average price |
5,230.0 |
799.4 |
97 |
12.0 |
|
|
8 - HPB300 |
Beijing |
5,230 |
799.4 |
140 |
18.7 |
|
Guangzhou |
5,180 |
791.8 |
80 |
9.5 |
|
|
Shanghai |
4,970 |
759.7 |
70 |
8.1 |
|
|
Average price |
5,126.7 |
783.7 |
97 |
12.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.5416