During the past week ending October 27, average Chinese domestic rebar and wire rod prices have moved up amid the rises in rebar futures prices and news about steel production cuts in Hebei. But the continuation of the trend is still shaky, according to market sources.
The average rebar price has moved up by RMB 30/mt ($4.2/mt) compared to October 20, while the average 6.5 mm HPB 300 wire rod price has increased by RMB 37/mt ($5.2/mt). Rebar prices have increased by RMB 13/mt ($1.8/mt) compared to the previous trading day, October 24.
Major cities in Hebei province - Shijiazhuang, Tangshan, Langfang, Hengshui, Handan, Xingtai, Baoding, and Cangzhou – started its steel production and transportation restrictions due to a level II emergency response to alleviate pollution, under which sintering restrictions will be 30 percent. This is expected to reduce crude steel production by around 400,000-450,000 mt from today and until the end of October. Apart from the production cuts, rebar and wire rod prices have indicated rises amid the increasing rebar futures prices. Raw material prices, including coking coal and coke, have moved up, bolstering rebar and wire rod prices from the cost side. The US and China have reached a fundamental consensus in their trade and economic consultations. Both sides will finalize the specific details and proceed with their respective domestic approval processes, which positively affected market sentiments. However, inventories of rebar and wire rod increased slightly, signaling the inventory pressure exceeded market’s consumption. It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week but with positive bias.
As of October 27, rebar futures at Shanghai Futures Exchange are standing at RMB 3,100/mt ($437/mt), increasing by RMB 55/mt ($7.7/mt) or 1.8 percent since October 20, while up 1.54 percent compared to the previous trading day, October 24.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,120 | 440.2 | +20 | +3.4 |
| Guangzhou | 3,290 | 464.2 | +50 | +7.6 | |
| Shanghai | 3,140 | 443.0 | +20 | +3.4 | |
| Average price | 3,183.3 | 449.1 | +30 | +4.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,600 | 507.9 | +50 | +7.7 |
| Guangzhou | 3,580 | 505.1 | +50 | +7.7 | |
| Shanghai | 3,630 | 512.1 | +10 | +2.1 | |
| Average price | 3,603.3 | 508.4 | +37 | +5.8 | |
| 8 - HPB300 | Beijing | 3,380 | 476.9 | +50 | +7.6 |
| Guangzhou | 3,520 | 496.6 | +50 | +7.7 | |
| Shanghai | 3,370 | 475.5 | +10 | +2.0 | |
| Average price | 3,423.3 | 483.0 | +37 | +5.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0881
