During the past week ending May 11, average Chinese domestic rebar and wire rod prices have continued their uptrend amid better sentiments, improved demand and increases in rebar futures prices after the holiday.
The average rebar price has increased by RMB 93/mt ($13.6/mt) compared to April 27, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 93/mt ($13.6/mt). Rebar prices have moved up by RMB 27/mt ($3.9/mt) compared to the previous trading day, May 8.
During the given week, rebar and wire rod prices have moved up significantly amid stock replenishments by downstream users following the Labor Day holiday (May 1-5). Demand has improved compared to the pre-holiday period. On May 11, Jiangsu Province-based major Chinese steelmaker Shagang Group raised its offer prices for 16-20 mm HRB400 rebar and 8-10 mm HRB400 debar-in-coil by RMB 50/mt ($7.3/mt), to RMB 3,400/mt ($496/mt) and RMB 3,530/mt ($515/mt), respectively, positively affecting market sentiments.
Meanwhile, rebar futures prices have moved up, exerting a positive impact on prices in the spot market. At the same time, inventories of rebar and wire rod have continued to decline, bolstering prices firmly. Currently, supply-demand fundamentals remain broadly balanced. It is expected that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range at higher levels in the coming week.
As of May 11, rebar futures at Shanghai Futures Exchange are standing at RMB 3,286/mt ($465/mt), increasing by RMB 96/mt ($14.0/mt) or 3.0 percent since April 27, while rising by 0.34 percent compared to the previous trading day, May 8.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,410 | 498.0 | 150 | 22.7 |
| Guangzhou | 3,580 | 522.9 | 50 | 8.1 | |
| Shanghai | 3,270 | 477.6 | 80 | 12.4 | |
| Average price | 3,420 | 499.5 | 93 | 14.4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,970 | 579.8 | 180 | 27.2 |
| Guangzhou | 3,860 | 563.8 | 30 | 5.3 | |
| Shanghai | 3,690 | 538.9 | 70 | 11.1 | |
| Average price | 3,840 | 560.8 | 93 | 14.5 | |
| 8 - HPB300 | Beijing | 3,750 | 547.7 | 180 | 27.1 |
| Guangzhou | 3,800 | 555.0 | 30 | 5.3 | |
| Shanghai | 3,460 | 505.3 | 70 | 11.0 | |
| Average price | 3,670 | 536.0 | 93 | 14.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.8467
