Local Chinese rebar and wire rod prices fall visibly amid slack demand

Monday, 18 January 2021 16:29:25 (GMT+3)   |   Shanghai
       

During the week ending January 18, average Chinese domestic rebar and wire rod prices have moved an overall downtrend as demand has slackened due to the traditional offseason and the increased spread of Covid-19.

Over the past week, the average rebar price in China has lost RMB 87/mt, while the average wire rod price has decreased by RMB 107/mt, according to SteelOrbis’ figures.

During the given week, rebar and wire rod prices have moved on an overall downtrend amid the worsening Covid-19 pandemic in northern China, which has resulted in slacker demand. A few cities in Shandong Province have started to stop all construction works over the past couple of days as the local government has been trying to prevent the further spread of the Covid-19 virus.

Chinese steel mills’ capacity utilization rates have declined slightly due to their cautious view of the future market prospects. Downstream users may start building up stocks in the near future ahead of the Chinese New Year, though any boom in demand may be limited somewhat amid the relatively high costs on the steelmakers’ side. It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.

On January 18, rebar futures contract (2105) offers closed at RMB 4,392/mt ($671/mt) at Shanghai Futures Exchange, up RMB 44/mt ($6.8/mt) or by 1.0 percent compared to January 11 and up by 0.55 percent compared to the previous trading day (January 15), reflecting market players’ improved sentiment as regards the future prospect for the rebar market.

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 
($/mt)

Weekly change 
(RMB/mt)

Weekly change 
($/mt)

25 - HRB400

Beijing

4,070

627.6

-50

-8.6

Guangzhou

4,690

723.2

-80

-13.4

Shanghai

4,320

666.2

-130

-21.0

Average price

4,360.0

672.3

-87

-14.3

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 
($/mt)

6.5 - HPB300

Beijing

4,730

729.4

-40

-7.2

Guangzhou

4,900

755.6

-80

-13.4

Shanghai

4,470

689.3

-200

-31.8

Average price

4,700.0

724.7

-107

-17.5

8 - HPB300

Beijing

4,510

695.5

-40

-7.1

Guangzhou

4,840

746.3

-80

-13.4

Shanghai

4,440

684.7

-230

-36.5

Average price

4,596.7

708.8

-117

-19.0

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.4846


Similar articles

Stoppages and slowdowns in southern European longs production

29 Mar | Longs and Billet

Iskenderun-based Turkish mill revises its rebar price

29 Mar | Longs and Billet

Import longs offers in Romania now attractive, local prices stable

28 Mar | Longs and Billet

Turkey seeks to raise rebar export offers, demand mostly seen locally

27 Mar | Longs and Billet

Saudi Arabia’s Hadeed keeps local longs prices stable again for April

26 Mar | Longs and Billet

Iskenderun-based Turkish mill issues its longs prices

26 Mar | Longs and Billet

Local Chinese longs prices up $7-8/mt amid improved demand

25 Mar | Longs and Billet

Stocks of main finished steel products in China down 0.6 percent in mid-March

25 Mar | Steel News

Lebanese rebar market quiet while import prices drop

22 Mar | Longs and Billet

Iskenderun-based Turkish mill cuts longs prices as week ends

22 Mar | Longs and Billet