During the past week ending July 21, average Chinese domestic rebar and wire rod prices have moved up by $15/mt amid the increasing rebar futures prices, following better sentiment regarding steel supply and supportive measures by the government. The uptrend is expected to continue in the short term.
The average rebar price has increased by RMB 107/mt ($15.0/mt) compared to July 14, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 103/mt ($14.4/mt). Rebar prices have increased by RMB 73/mt ($10.2/mt) compared to the previous trading day, July 18.
During the given week, rebar and wire rod prices have indicated increases, following strong gains in futures prices. Inventories of rebar and wire rod have been at relatively low levels, bolstering prices. Since the Chinese government has called for excessive competition to be curbed, market players are optimistic as regards the future prospects for the rebar and wire rod market. At the same time, raw material prices have continued their uptrend, providing solid support for rebar and wire rod prices from the cost side. It is thought that rebar and wire rod prices in the Chinese domestic market will edge up in the coming week.
As of July 21, rebar futures at Shanghai Futures Exchange are standing at RMB 3,224/mt ($451/mt), increasing by RMB 86/mt ($10.8/mt) or 2.7 percent since July 14, while up 2.15 percent compared to the previous trading day, July 18.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,260 | 455.8 | 90 | 12.4 |
| Guangzhou | 3,450 | 482.4 | 120 | 16.6 | |
| Shanghai | 3,250 | 454.4 | 110 | 15.2 | |
| Average price | 3,320.0 | 464.2 | 107 | 14.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,730 | 521.5 | 80 | 11.0 |
| Guangzhou | 3,760 | 525.7 | 120 | 16.6 | |
| Shanghai | 3,780 | 528.5 | 110 | 15.2 | |
| Average price | 3,756.7 | 525.3 | 103 | 14.2 | |
| 8 - HPB300 | Beijing | 3,510 | 490.8 | 80 | 11.0 |
| Guangzhou | 3,700 | 517.3 | 120 | 16.6 | |
| Shanghai | 3,490 | 488.0 | 110 | 15.2 | |
| Average price | 3,566.7 | 498.7 | 103 | 14.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1522