During the past week ending May 26, average Chinese domestic rebar and wire rod prices have moved down amid decreasing rebar futures and worse fundamentals amid weakening demand due to the start of the rainy season.
The average rebar price has decreased by RMB 57/mt ($7.9/mt) compared to May 19, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 60/mt ($8.3/mt). Rebar prices have decreased by RMB 27/mt ($3.8/mt) compared to the previous trading day, May 23.
During the given week, rebar and wire rod prices have moved down as demand has been weaker. Bearish sentiments have prevailed among market players, weakening the support for rebar and wire rod prices. Inventory of rebar and wire rod has been at relatively low levels, bolstering prices to a certain degree. Some steelmakers will implement maintenance works by the end of May, which will reduce the supplies to the market and positively affect rebar and wire rod prices. However, so far in May major mills have been keeping production relatively stable compared to April and the overall supply is still rather high, according to market sources.
Since the Dragon Boat Festival (May 31-June 2) is approaching, downstream users may restock, which will exert a positive impact on rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move sideways or rebound slightly by the end of the week.
As of May 26, rebar futures at Shanghai Futures Exchange are standing at RMB 3,004/mt ($417/mt), decreasing by RMB 65/mt ($9.0/mt) or 2.1 percent since May 19, while down 1.67 percent compared to the previous trading day, May 23.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,170 | 441.3 | -20 | -2.2 |
| Guangzhou | 3,310 | 460.8 | -100 | -13.3 | |
| Shanghai | 3,120 | 434.4 | -50 | -6.4 | |
| Average price | 3,200.0 | 445.5 | -57 | -7.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,720 | 517.9 | -30 | -3.5 |
| Guangzhou | 3,560 | 495.6 | -100 | -13.3 | |
| Shanghai | 3,660 | 509.5 | -50 | -6.3 | |
| Average price | 3,646.7 | 507.7 | -60 | -7.7 | |
| 8 - HPB300 | Beijing | 3,540 | 492.8 | -30 | -3.6 |
| Guangzhou | 3,500 | 487.3 | -100 | -13.3 | |
| Shanghai | 3,370 | 469.2 | -50 | -6.4 | |
| Average price | 3,470.0 | 483.1 | -60 | -7.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1833