During the past week ending July 7, average Chinese domestic rebar and wire rod prices have moved up amid support from increasing rebar futures prices.
The average rebar price has increased by RMB 43/mt ($6.5/mt) compared to June 30, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 57/mt ($8.0/mt). Rebar prices have declined by RMB 7/mt ($1.0/mt) compared to the previous trading day, July 4.
During the given week, rebar and wire rod prices have moved on an uptrend amid increasing rebar futures prices. Market sentiments have improved to a certain degree, while the relatively low inventory levels have also exerted a positive impact on the rebar and wire rod market. The production reduction in Tangshan, a major steelmaking hub in northern China, is anticipated to reduce steel supply from Tangshan to the spot market by 11 percent in July, which will positively affect rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will edge up in the coming week. However, since demand is still expected to be weak, the gains will be very small and all eyes are on the supply side and possible official stimulus measures in mid-July.
As of July 7, rebar futures at Shanghai Futures Exchange are standing at RMB 3,061/mt ($428/mt), increasing by RMB 64/mt ($9/mt) or 2.1 percent since June 30, while down 0.68 percent compared to the previous trading day, July 4.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) | Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,160 | 441.9 | +10 | +1,9 |
| Guangzhou | 3,250 | 454.5 | +90 | +13,1 | |
| Shanghai | 3,100 | 433.5 | +30 | +4,7 | |
| Average price | 3,170.0 | 443.3 | +43 | +6,5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) | Weekly change (RMB/mt) | Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,650 | 510.4 | +40 | +6,2 |
| Guangzhou | 3,510 | 490.8 | +100 | +14,5 | |
| Shanghai | 3,620 | 506.2 | +30 | +4,8 | |
| Average price | 3,593.3 | 502.5 | +57 | +8,5 | |
| 8 - HPB300 | Beijing | 3,430 | 479.7 | +40 | +6,1 |
| Guangzhou | 3,450 | 482.5 | +100 | +14,5 | |
| Shanghai | 3,330 | 465.7 | +30 | +4,7 | |
| Average price | 3,403.3 | 475.9 | +57 | +8,4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1506
