During the week ending May 31, average Chinese domestic rebar and wire rod prices have moved up, following previous sharp decreases, amid the rebounding trend in ferrous metal futures prices, even though demand has not improved.
The average rebar price has posted an increase by RMB 73/mt over the past week, while the average wire rod price has gained RMB 83/mt.
The main rise has been seen today, May 31, following further futures gains and the improvement in billet prices. Today, the average rebar price in China has added RMB 183/mt or $29/mt compared to last Friday’s level, offsetting earlier decreases.
During the given week, rebar futures prices in China have indicated a rebounding trend since late last week following previous sharp declines, bolstering rebar and wire rod prices in the spot market. Strict supervision of steel capacities in northern provinces will exert a negative impact on steel supply. At the same time, since the rainy season in southern and eastern China is approaching, demand for rebar and wire rod will slacken, which will weaken the support for prices.
For now, there has been no any visible improvement in construction steel demand. Moreover, many customers have been even more cautious in purchases. However, buying activity may improve a little in the short term, if there is an easing of price fluctuations.
On May 31, rebar futures contract (2105) offers closed at RMB 5,027/mt ($789.4/mt) at Shanghai Futures Exchange, up RMB 53/mt ($8/mt) or by 1.07 percent compared to May 24, signaling market players’ improved sentiments as regards the future prospects for the rebar market following previous declines. Since Friday, rebar futures have gained RMB 120/mt or $19/mt on May 31.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
5,280 |
829.1 |
10 |
10.9 |
|
Guangzhou |
5,340 |
838.6 |
110 |
26.6 |
|
|
Shanghai |
5,010 |
786.7 |
100 |
24.4 |
|
|
Average price |
5,210.0 |
818.2 |
73 |
20.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
6,200 |
973.6 |
50 |
18.8 |
|
Guangzhou |
5,670 |
890.4 |
120 |
28.7 |
|
|
Shanghai |
5,530 |
868.4 |
80 |
22.3 |
|
|
Average price |
5,800.0 |
910.8 |
83 |
23.3 |
|
|
8 - HPB300 |
Beijing |
5,980 |
939.1 |
50 |
18.4 |
|
Guangzhou |
5,610 |
881.0 |
120 |
28.6 |
|
|
Shanghai |
5,480 |
860.6 |
80 |
22.2 |
|
|
Average price |
5,690.0 |
893.5 |
83 |
23.1 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 6.3682