During the week ending December 2, average prices of Chinese domestic rebar and wire rod have moved on an overall downtrend, while transaction activity in the overall domestic rebar and wire rod market has shrunk compared to previous week.
On December 2, rebar futures contract (2001) offers closed at RMB 3,634/mt ($517/mt) at Shanghai Futures Exchange, down by RMB 63/mt or 1.7 percent week on week, i.e., decreasing by $8/mt. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Product name |
Specification (mm) |
Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 |
HRB400 |
Beijing |
Hebei Steel |
3,810 |
542 |
-70 |
-9.2 |
|
|
Guangzhou |
Shaoguan Steel |
4,860 |
691.3 |
-120 |
-16.1 |
|||
|
Shanghai |
Shente |
4,070 |
578.9 |
-110 |
-14.8 |
|||
|
Average price |
|
4,246.7 |
604.1 |
-100 |
-13.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Product name |
Specification (mm) |
Category |
City |
Steel plant/place of origin |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 |
HPB300 |
Beijing |
Hebei Steel |
4,430 |
630.2 |
-10 |
-0.5 |
|
|
Guangzhou |
Shaoguan Steel |
4,670 |
664.3 |
-160 |
-21.8 |
|||
|
Shanghai |
Shente Steel |
4,340 |
617.4 |
-140 |
-19 |
|||
|
Average price |
|
4,480 |
637.3 |
-103 |
-13.8 |
|||
|
8 |
HPB300 |
Beijing |
Hebei Steel |
4,280 |
608.8 |
-10 |
-0.6 |
|
|
Guangzhou |
Shaoguan Steel |
4,610 |
655.8 |
-160 |
-21.8 |
|||
|
Shanghai |
Shente Steel |
4,340 |
617.4 |
-140 |
-19 |
|||
|
Average price |
|
4,410 |
627.3 |
-103 |
-13.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
During the given week, following previous sharp rises in rebar futures prices, players in the futures market became more cautious towards trading activities, resulting in decreases in rebar futures prices. Rebar prices in the domestic spot market have been negatively affected and moved down. However, inventories of rebar are at relatively low levels, providing support for rebar prices. At the same time, the weather in China has become colder, which will exert a negative impact on construction activities and rebar market.
Ex-China HRB400 grade 20 mm rebar export prices are standing at $460-470/mt FOB, moving sideways over the past week, while Chinese export offer prices for wire rod are now at $460-470/mt FOB.
$1 = RMB 7.0262