During the week ending September 2, average prices of Chinese domestic rebar and wire rod have mostly moved down, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. And though average prices for longs have moved up slightly today Monday, September 2, amid higher iron ore prices, which have touched the $90/mt CFR mark again, sentiments have remained negative in the local longs market. High supply volumes and the ongoing lack of improvement in demand will be the major reasons preventing prices from visibly increasing in the near future.
In the first part of the given week, rebar futures prices in China moved down, exerting a negative impact on rebar and wire rod prices in the spot market. In the latter part of the given week, transaction activities at lower-end prices have improved and so some traders increased their offer prices. On September 2, rebar futures contract (2001) offers closed at RMB 3,407/mt ($481/mt) at Shanghai Futures Exchange, up $3/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Product name |
Specification (mm) |
Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 |
HRB400 |
Beijing |
Hebei Steel |
3,620 |
510.7 |
+10 |
+1 |
|
|
Guangzhou |
Shaoguan Steel |
4,010 |
565.7 |
-20 |
-3 |
|||
|
Shanghai |
Shente |
3,640 |
513.5 |
-20 |
-3 |
|||
|
Average price |
|
3,756.7 |
530.0 |
-10 |
-1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Product name |
Specification (mm) |
Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 |
HPB300 |
Beijing |
Hebei Steel |
4,610 |
650.4 |
-20 |
-3 |
|
|
Guangzhou |
Shaoguan Steel |
4,150 |
585.5 |
-60 |
-8 |
|||
|
Shanghai |
Shente Steel |
3,910 |
551.6 |
-20 |
-3 |
|||
|
Average price |
|
4,223.3 |
595.8 |
-33 |
-5 |
|||
|
8 |
HPB300 |
Beijing |
Hebei Steel |
4,460 |
629.2 |
-20 |
-3 |
|
|
Guangzhou |
Shaoguan Steel |
4,100 |
578.4 |
-60 |
-8 |
|||
|
Shanghai |
Shente Steel |
3,910 |
551.6 |
-20 |
-3 |
|||
|
Average price |
|
4,156.7 |
586.4 |
-33 |
-5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Meanwhile, iron ore prices have started to rebound since late last week, reaching $90.5/mt CFR today, leading to a certain rebound in spot rebar and wire rod prices. The average rebar price in China has increased by RMB 30/mt ($5/mt) since Friday, coming to RMB 3,757/mt ($531/mt) ex-warehouse, according to SteelOrbis’ information. However, demand for longs in China has stayed weak as rainy weather has hit most regions of the country.
On September 1, Chinese major rebar and wire rod producer Shagang Group issued its price policy for September 1-10, cutting prices for high-speed wire rod and rebar, reflecting the ongoing negative demand situation in China.
$1 = RMB 7.09