During the past week ending August 11, average Chinese domestic rebar and wire rod prices have edged up amid lower production recently and expected bigger cuts from late August ahead of the important military parade on September 3, as well as high raw materials prices. However, gains have been very small because of slow demand and no expectations for an improvement in the short term.
The average rebar price has increased by RMB 23/mt ($3.2/mt) compared to August 4, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 7/mt ($1/mt). Rebar prices have increased by RMB 6/mt ($0.84/mt) compared to the previous trading day, August 8.
Construction activities have slowed down, exerting a negative impact on the demand for rebar and wire rod. Inventories of rebar and wire rod are expected to increase, which weaken prices. Meanwhile, increasing prices of raw materials, including coking coal and coke, will likely bolster rebar and wire rod prices to a certain degree. It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week with only small gains possible. Some bigger longs price increases may be seen later in August.
As of August 11, rebar futures at Shanghai Futures Exchange are standing at RMB 3,250/mt ($455/mt), increasing by RMB 46/mt ($6.4/mt) or 1.4 percent since August 4, while up 1.09 percent compared to the previous trading day, August 8.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,320 | 464.9 | +70 | +9.7 |
| Guangzhou | 3,380 | 473.3 | -20 | -2.9 | |
| Shanghai | 3,300 | 462.1 | +20 | +2.7 | |
| Average price | 3,333.3 | 466.8 | +23 | +3.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,770 | 527.9 | +20 | +2.7 |
| Guangzhou | 3,680 | 515.3 | -20 | -2.9 | |
| Shanghai | 3,820 | 534.9 | +20 | +2.7 | |
| Average price | 3,756.7 | 526.1 | +7 | +0.9 | |
| 8 - HPB300 | Beijing | 3,550 | 497.1 | +20 | +2.7 |
| Guangzhou | 3,620 | 506.9 | -20 | -2.9 | |
| Shanghai | 3,530 | 494.3 | +20 | +2.7 | |
| Average price | 3,566.7 | 499.5 | +7 | +0.9 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1405