During the past week ending November 3, average Chinese domestic rebar and wire rod prices have edged up amid slightly decreasing inventories, while measures to balance supply and demand introduced by the government supported the market mood last week. However, further increases are doubtful as weak demand will still remain the main factor impacting prices.
The average rebar price has moved up by RMB 40/mt ($5.6/mt) compared to October 27, while the average 6.5 mm HPB 300 wire rod price has increased by RMB 27/mt ($3.6/mt). Rebar prices have decreased by RMB 7/mt ($1/mt) compared to the previous trading day, October 31.
During the given week, rebar and wire rod prices have seen slight rises as inventories have decreased slightly. The capacity utilization rates of rebar and wire rod producers have decreased compared to the previous week, easing supply pressure and bolstering prices.
Also, the government has proposed the replacement ratio for iron-making and steelmaking capacities in all provinces at no lower than 1.5:1 versus the previous 1.25:1.
However, since the weather in November is going to be colder, the demand for rebar and wire rod may slacken due to slower construction activities. It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.
As of November 3, rebar futures at Shanghai Futures Exchange are standing at RMB 3,079/mt ($434/mt), decreasing by RMB 21/mt ($3/mt) or 0.7 percent since October 27, while down 0.96 percent compared to the previous trading day, October 31.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,180 | 448.7 | 60 | 8.5 |
| Guangzhou | 3,330 | 469.9 | 40 | 5.7 | |
| Shanghai | 3,160 | 445.9 | 20 | 2.9 | |
| Average price | 3,223.3 | 454.8 | 40 | 5.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,650 | 515.0 | 50 | 7.1 |
| Guangzhou | 3,620 | 510.8 | 40 | 5.7 | |
| Shanghai | 3,620 | 510.8 | -10 | -1.3 | |
| Average price | 3,630.0 | 512.2 | 27 | 3.8 | |
| 8 - HPB300 | Beijing | 3,430 | 484.0 | 50 | 7.1 |
| Guangzhou | 3,560 | 502.3 | 40 | 5.7 | |
| Shanghai | 3,380 | 476.9 | 10 | 1.5 | |
| Average price | 3,456.7 | 487.7 | 33 | 4.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0867
