Local Chinese rebar and wire rod prices down sharply, but futures surge on Monday

Monday, 09 December 2019 16:46:46 (GMT+3)   |   Shanghai
       

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 
($/mt)

Weekly change 
(RMB/mt)

Weekly change 
($/mt)

Rebar

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 
($/mt)

Wire rod

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


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