During the past week ending August 18, average Chinese domestic rebar and wire rod prices have moved down amid declining rebar futures and cautious market sentiments due to weakening demand and higher inventories.
The average rebar price has decreased by RMB 37/mt ($5.2/mt) compared to August 11, while the average 6.5 mm HPB 300 wire rod price has also declined by RMB 37/mt ($5.2/mt). Rebar prices have decreased by RMB 10/mt ($1.4/mt) compared to the previous trading day, August 15.
During the given week, rebar and wire rod prices in the Chinese domestic market have edged down slightly amid declining rebar futures prices. At the same time, cautious sentiments have prevailed among market players, exerting a negative impact on rebar and wire rod prices in the spot market. Some steelmakers will implement production cuts amid the approach of the military parade in September, which will bolster rebar and wire rod prices to a certain degree. However, inventory of rebar and wire rod is expected to rise amid increasing supplies arriving in the market, which will weaken the support for prices. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of August 18, rebar futures at Shanghai Futures Exchange are standing at RMB 3,155/mt ($442.5/mt), decreasing by RMB 95/mt ($13.3/mt) or 2.9 percent since August 11, while down 0.88 percent compared to the previous trading day, August 15.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,290 | 461.3 | -30 | -3.6 |
| Guangzhou | 3,350 | 469.7 | -30 | -3.6 | |
| Shanghai | 3,250 | 455.7 | -50 | -6.4 | |
| Average price | 3,296.7 | 462.2 | -37 | -4.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,750 | 525.8 | -20 | -2.1 |
| Guangzhou | 3,650 | 511.8 | -30 | -3.6 | |
| Shanghai | 3,760 | 527.2 | -60 | -7.7 | |
| Average price | 3,720.0 | 521.6 | -37 | -4.5 | |
| 8 - HPB300 | Beijing | 3,530 | 495.0 | -20 | -2.2 |
| Guangzhou | 3,590 | 503.4 | -30 | -3.6 | |
| Shanghai | 3,470 | 486.5 | -60 | -7.8 | |
| Average price | 3,530.0 | 495.0 | -37 | -4.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1322