During the past week ending November 17, average Chinese domestic rebar and wire rod prices have moved up amid increasing rebar futures prices, higher costs and some reduction of supply. However, it will be difficult for prices to rise further.
The average rebar price has moved up by RMB 53/mt ($7.5/mt) compared to November 10, while the average 6.5 mm HPB 300 wire rod price has risen by RMB 60/mt ($8.5/mt). Rebar prices have increased by RMB 36/mt ($5.1/mt) compared to the previous trading day, November 14.
During the given week, rebar and wire rod prices have moved on an upward trend amid rising rebar futures prices. Coke prices have seen a fourth round of hikes, bolstering rebar and wire rod prices from the cost side. Outputs of rebar and wire rod have declined, while apparent consumption has also decreased, together affecting the market. Inventories of rebar and wire rod have increased, which may exert a negative impact on prices. By the end of the year, market liquidity may tighten and negatively affect the demand for rebar and wire rod. 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 17, rebar futures at Shanghai Futures Exchange are standing at RMB 3,097/mt ($436/mt), increasing by RMB 53/mt ($7.5/mt) or 1.7 percent since November 10, while up 1.64 percent compared to the previous trading day, November 14.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,220 | 454.7 | 40 | 5.9 |
| Guangzhou | 3,380 | 477.3 | 90 | 13.0 | |
| Shanghai | 3,160 | 446.2 | 30 | 4.5 | |
| Average price | 3,253.3 | 459.4 | 53 | 7.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,700 | 522.5 | 50 | 7.4 |
| Guangzhou | 3,680 | 519.6 | 100 | 14.4 | |
| Shanghai | 3,630 | 512.6 | 30 | 4.5 | |
| Average price | 3,670.0 | 518.2 | 60 | 8.8 | |
| 8 - HPB300 | Beijing | 3,480 | 491.4 | 50 | 7.3 |
| Guangzhou | 3,620 | 511.2 | 100 | 14.4 | |
| Shanghai | 3,390 | 478.7 | 30 | 4.5 | |
| Average price | 3,496.7 | 493.7 | 60 | 8.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.0816