During the week ending August 16, average Chinese domestic rebar and wire rod prices have edged up slightly amid strict production restrictions and lower inventories held by customers due to transportation issues. Nevertheless, most market participants still believe that the market situation is far from positive as demand is reduced and the rising Covid-19 cases in China are increasing concerns for the near future.
During the given period, the average rebar price has gained RMB 33/mt, while the average wire rod price has increased by RMB 23/mt. Compared to last Friday, the average rebar price has lost RMB 10/mt, reflecting the overall cautious sentiment in the market.
During the given week, domestic rebar and wire rod prices in China have increased slightly, supported by the rebounding trend seen in rebar futures prices last week and better transaction activities in the middle of last week. But despite some improvement, market players’ sentiments are not very strong as overall consumption has not rebounded sharply. There are reports in the market of a weakening of inventories in the spot market, but this is mainly due to transportation issues caused by rising Covid-19 restrictions, than due to a real demand increase.
The continuing production restrictions and expected better demand may bolster the rebar and wire rod market in the coming week, but any big rises are unlikely, market sources believe.
On August 16, rebar futures contract (2201) offers closed at RMB 5,328/mt ($823.5/mt) at Shanghai Futures Exchange, posting a very small decline of RMB 2/mt compared to the closing futures price level (2110) on August 9. However, they showed a RMB 114/mt drop from last Friday, signaling market players’ bearish sentiments as regards the rebar market prospects.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
5,200 |
803.5 |
60 |
10.7 |
|
Guangzhou |
5,580 |
862.2 |
10 |
3.1 |
|
|
Shanghai |
5,250 |
811.2 |
30 |
6.1 |
|
|
Average price |
5,343.3 |
825.6 |
33 |
6.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
6,270 |
968.8 |
70 |
12.6 |
|
Guangzhou |
5,900 |
911.6 |
-30 |
-2.9 |
|
|
Shanghai |
5,500 |
849.8 |
30 |
6.2 |
|
|
Average price |
5,890.0 |
910.1 |
23 |
5.3 |
|
|
8 - HPB300 |
Beijing |
6,050 |
934.8 |
70 |
12.5 |
|
Guangzhou |
5,840 |
902.3 |
-30 |
-3.0 |
|
|
Shanghai |
5,440 |
840.5 |
30 |
6.2 |
|
|
Average price |
5,776.7 |
892.6 |
23 |
5.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.4717