During the past week ending February 9, average Chinese domestic rebar and wire rod prices have edged down slightly amid declining rebar futures prices and rather weak demand, while supply has also shrunk.
The average rebar price has decreased by RMB 13/mt ($1.9/mt) compared to February 2, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 13/mt ($1.9/mt). Rebar prices have remained stable compared to the previous trading day, February 6.
During the given week, rebar and wire rod prices in the Chinese domestic market have edged down slightly amid quiet transaction activity as the Chinese New Year holiday (February 14-23) is drawing closer. Most players have already left the market ahead of the holiday. Inventories of rebar and wire rod have increased, negatively affecting prices, but, on the other hand, some areas like Tangshan have been ordering mills to cut production in order to reduce pollution levels and so supply has also been reduced. “General inventory is climbing fast, by around 10 percent for longs and flats, and more enterprises have stopped working. It is a common phenomenon before the Chinese New Year holiday and all factors will become clear in March,” a Chinese trader noted.
As of February 9, rebar futures at Shanghai Futures Exchange are standing at RMB 3,064/mt ($444.5/mt), decreasing by RMB 34/mt ($5/mt) or 1.1 percent since February 2, while down 0.84 percent compared to the previous trading day, February 6.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,120 | 448.8 | -20 | -1.7 |
| Guangzhou | 3,420 | 491.9 | -10 | -0.2 | |
| Shanghai | 3,150 | 453.1 | -10 | -0.3 | |
| Average price | 3,230.0 | 464.6 | -13 | -0.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,620 | 520.7 | -20 | -1.5 |
| Guangzhou | 3,730 | 536.5 | -10 | 0.0 | |
| Shanghai | 3,630 | 522.2 | -10 | -0.1 | |
| Average price | 3,660.0 | 526.5 | -13 | -0.6 | |
| 8 - HPB300 | Beijing | 3,400 | 489.1 | -20 | -1.6 |
| Guangzhou | 3,670 | 527.9 | -10 | -0.1 | |
| Shanghai | 3,400 | 489.1 | -10 | -0.2 | |
| Average price | 3,490.0 | 502.0 | -13 | -0.6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.9523
