During the week ending September 9, average prices of Chinese domestic rebar and wire rod have seen a rebounding trend, while transaction activity in the overall domestic rebar and wire rod market has been at medium levels. Easing supply pressure and improved demand have contributed to the rebound in rebar and wire rod prices.
Over the given week, rebar futures prices have moved on a rising trend, exerting a positive impact on rebar and wire rod prices in the spot market. On September 9, rebar futures contract (2001) offers closed at RMB 3,497/mt ($494/mt) at Shanghai Futures Exchange, up $13/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Product name |
Specification (mm) |
Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 |
HRB400 |
Beijing |
Hebei Steel |
3,680 |
519.4 |
+60 |
+8 |
|
|
Guangzhou |
Shaoguan Steel |
4,050 |
571.6 |
+40 |
+6 |
|||
|
Shanghai |
Shente |
3,700 |
522.2 |
+60 |
+8 |
|||
|
Average price |
|
3,810 |
537.8 |
+53 |
+8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local market
|
Product name |
Specification (mm) |
Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 |
HPB300 |
Beijing |
Hebei Steel |
4,630 |
653.5 |
+20 |
+3 |
|
|
Guangzhou |
Shaoguan Steel |
4,180 |
590 |
+30 |
+4 |
|||
|
Shanghai |
Shente Steel |
3,990 |
563.2 |
+80 |
+11 |
|||
|
Average price |
|
4,266.7 |
602.2 |
+43 |
+6 |
|||
|
8 |
HPB300 |
Beijing |
Hebei Steel |
4,480 |
632.3 |
+20 |
+3 |
|
|
Guangzhou |
Shaoguan Steel |
4,130 |
582.9 |
+30 |
+4 |
|||
|
Shanghai |
Shente Steel |
3,990 |
563.2 |
+80 |
+11 |
|||
|
Average price |
|
4,200 |
592.8 |
+43 |
+6 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Meanwhile, iron ore prices have edged up from $83/mt CFR on August 30 to $88.2/mt on September 6, bolstering spot rebar and wire rod prices. The average rebar price in China has moved up by RMB 13/mt ($1.8/mt) since Friday reaching to RMB 3,810/mt ($537.8/mt) ex-warehouse on September 9.
The People’s Bank of China (PBC) announced on September 6 that it has decided to lower the required reserve ratio (RRR) for financial institutions by 0.5 percentage points on September 16, which boosted market players’ sentiments in ferrous metal market.
$1 = RMB 7.08