As of July 17, average Chinese domestic rebar and wire rod prices have seen an increase compared to July 10. However, market sources have not been assessing this as a rebounding trend and the retreat of prices on Monday has proven that sentiment is still cautious.
The average rebar price has increased by RMB 20/mt compared to July 10, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 20/mt. Rebar prices have seen a drop of RMB 17/mt compared to last Friday.
During the given week, rebar and wire rod prices in the Chinese domestic market moved down first while rising later, amid slack demand from downstream users, but improved demand among speculators, which resulted in higher futures prices. The output of rebar has decreased slightly, exerting a positive impact on prices. Though the production restriction policy has weakened the demand for raw materials, the appreciation of the RMB against the US dollar has stimulated the demand for iron ore, thereby providing some support for rebar and wire rod prices from the cost side.
However, actual consumption is still weak, which will negatively affect the rebar and wire rod market. Moreover, the recent data for the property market in China has again showed a decline. For instance, the new construction starts dropped by 24.3 percent in the January-June period, versus 22.6 percent in January-May. Property sales by floor area posted a drop of 5.3 percent in the first half of this year, compared to just 0.9 percent in the first five months.
It is thought that rebar and wire rod prices in the Chinese domestic market will likely move sideways or soften slightly down in the coming week.
On July 17, rebar futures contract (rb2210) offers closed at RMB 3,687/mt ($517/mt) at Shanghai Futures Exchange, increasing by RMB 33/mt ($4.6mt) or 0.9 percent compared to July 10, while increasing by 1.63 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,720 |
521.5 |
10 |
5.7 |
|
Guangzhou |
3,880 |
544.0 |
40 |
10.1 |
|
|
Shanghai |
3,660 |
513.1 |
10 |
5.7 |
|
|
Average price |
3,753.3 |
526.2 |
20 |
7.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,350 |
609.8 |
10 |
6.5 |
|
Guangzhou |
4,170 |
584.6 |
60 |
13.2 |
|
|
Shanghai |
4,240 |
594.4 |
-10 |
3.6 |
|
|
Average price |
4,253.3 |
596.3 |
20 |
7.8 |
|
|
8 - HPB300 |
Beijing |
4,170 |
584.6 |
10 |
6.3 |
|
Guangzhou |
4,110 |
576.2 |
60 |
13.1 |
|
|
Shanghai |
3,940 |
552.4 |
-10 |
3.2 |
|
|
Average price |
4,073.3 |
571.1 |
20 |
7.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1326