During the week ending December 9, average prices of Chinese domestic rebar and wire rod have continued their downtrend, while transaction activity in the overall domestic rebar and wire rod market has also shrunk compared to the previous week. Nevertheless, today, Monday, rebar futures prices in China have seen a sharp rise, reflecting the appearance of some positive expectations in the market.
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 |
3,700 |
525.5 |
-110 |
-16.5 |
|
Guangzhou |
Shaoguan Steel |
4,550 |
646.2 |
-310 |
-45.1 |
|||
Shanghai |
Shente |
3,960 |
562.4 |
-110 |
-16.5 |
|||
Average price |
|
4,070.0 |
578.0 |
-177 |
-26.0 |
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 |
4,380 |
622.1 |
-50 |
-8.1 |
|
Guangzhou |
Shaoguan Steel |
4,280 |
607.9 |
-390 |
-56.4 |
|||
Shanghai |
Shente Steel |
4,120 |
585.1 |
-220 |
-32.2 |
|||
Average price |
|
4,260.0 |
605.0 |
-220 |
-32.2 |
|||
8 |
HPB300 |
Beijing |
Hebei Steel |
4,230 |
600.8 |
-50 |
-8.1 |
|
Guangzhou |
Shaoguan Steel |
4,220 |
599.3 |
-390 |
-56.4 |
|||
Shanghai |
Shente Steel |
4,120 |
585.1 |
-220 |
-32.2 |
|||
Average price |
|
4,190.0 |
595.1 |
-220 |
-32.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
During the given week, a lot of rebar and wire rod supplies arrived in the market, resulting in increases in inventory levels of rebar and wire rod in southern China, and so traders chose to sell at lower prices to avoid potential risks. However, the Chinese government will hold its Central Economic Work Conference in Beijing later this month, which will clarify some big issues regarding domestic demand. Market analysts think that infrastructure construction will receive solid support and be boosted in 2020.
Accordingly, ferrous metal futures prices in China have recorded big rises on December 9. Iron ore futures prices at Dalian Commodity Exchange are up 5.21 percent compared to December 6. Though rebar futures were declining slowly last week, on December 9 rebar futures contract (2001) offers closed at RMB 3,668/mt ($520.9/mt) at Shanghai Futures Exchange, up by RMB 69/mt or 1.9 percent since Friday.
$1 = RMB 7.041