During the past week ending August 25, average Chinese domestic rebar and wire rod prices have edged down amid decreasing rebar futures prices and increased inventories.
The average rebar price has decreased by RMB 27/mt ($3.8/mt) compared to August 18, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 33/mt ($4.6/mt). Rebar prices have increased by RMB 13/mt ($1.8/mt) compared to the previous trading day, August 22.
During the given week, rebar and wire rod prices in the Chinese domestic market have seen slight decreases amid the slack demand from downstream users. However, on August 25, first-tier city Shanghai issued stimulus policies to boost real estate industry, including lifting restrictions on purchasing houses outside the outer ring (basically the suburbs) and decreasing interest rates for housing loans, which will exert a positive impact on the rebar and wire rod market. Moreover, since the traditional peak season for steel industry is approaching, the demand for rebar and wire rod will improve and bolster prices. It is expected that rebar and wire rod prices in the Chinese domestic market will rebound slightly in the coming week.
As of August 25, rebar futures at Shanghai Futures Exchange are standing at RMB 3,138/mt ($441/mt), decreasing by RMB 17/mt ($2.4/mt) or 0.5 percent since August 18, while up 0.71 percent compared to the previous trading day, August 22.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,250 | 456.7 | -40 | -4.6 |
| Guangzhou | 3,310 | 465.1 | -40 | -4.6 | |
| Shanghai | 3,250 | 456.7 | 0 | 1.0 | |
| Average price | 3,270.0 | 459.5 | -27 | -2.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,720 | 522.8 | -30 | -3.0 |
| Guangzhou | 3,600 | 505.9 | -50 | -5.9 | |
| Shanghai | 3,740 | 525.6 | -20 | -1.6 | |
| Average price | 3,686.7 | 518.1 | -33 | -3.5 | |
| 8 - HPB300 | Beijing | 3,500 | 491.8 | -30 | -3.1 |
| Guangzhou | 3,540 | 497.5 | -50 | -5.9 | |
| Shanghai | 3,450 | 484.8 | -20 | -1.7 | |
| Average price | 3496.7 | 491.4 | -33 | -3.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1161
