During the past week ending June 30, average Chinese domestic rebar and wire rod prices have indicated slight decreases amid the sluggish demand from downstream users, but in general prices have still been moving in a very narrow range in the past week. Nevertheless, the fundamentals are still weak and the downtrend of prices may resume in the near future, especially if raw material prices also move down more.
The average rebar price has decreased by RMB 7/mt ($1/mt) compared to June 23, while the average 6.5 mm HPB 300 wire rod price has declined by RMB 20/mt ($2.8/mt). Rebar prices have risen by RMB 10/mt ($1.4/mt) compared to the previous trading day, June 27.
During the given week, rebar and wire rod prices in the Chinese domestic market have edged down slightly amid the sluggish demand from downstream users due to high temperatures and heavy rains, with even floods seen in some regions of China. Raw material prices increased late last week, bolstering rebar and wire rod prices to a certain degree. However, construction activities are expected to be at relatively low levels in July, which will negatively affect the demand for rebar and wire rod. Inventories of rebar and wire rod are anticipated to increase, which will weaken the support for prices. It is expected that rebar and wire rod prices in the Chinese domestic market will soften in the coming week.
As of June 30, rebar futures at Shanghai Futures Exchange are standing at RMB 2,997/mt ($419/mt), increasing by RMB 2/mt ($0.3/mt) or 0.07 percent since June 23, while up 0.23 percent compared to the previous trading day, June 27.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) | Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 25 - HRB400 | Beijing | 3,150 | 440.0 | -30 | -3.4 |
| Guangzhou | 3,160 | 441.4 | 0 | 0.7 | |
| Shanghai | 3,070 | 428.8 | 10 | 2.1 | |
| Average price | 3,126.7 | 436.7 | -7 | -0.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
| Spec. (mm) - Category | City | Price (RMB/mt) |
Price ($/mt) | Weekly change (RMB/mt) |
Weekly change ($/mt) |
| 6.5 - HPB300 | Beijing | 3,610 | 504.3 | -60 | -7.5 |
| Guangzhou | 3,410 | 476.3 | -10 | -0.6 | |
| Shanghai | 3,590 | 501.5 | 10 | 2.2 | |
| Average price | 3,536.7 | 494.0 | -20 | -2.0 | |
| 8 - HPB300 | Beijing | 3,390 | 473.5 | -60 | -7.6 |
| Guangzhou | 3,350 | 467.9 | -10 | -0.6 | |
| Shanghai | 3,300 | 461.0 | 10 | 2.2 | |
| Average price | 3,346.7 | 467.5 | -20 | -2.0 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1586
