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 ($6.8/mt) or by 1.0 percent compared to January 11 and up by 0.55 percent compared to the previous trading day (January 15), reflecting market players’ improved sentiment as regards the future prospect for the rebar market.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
25 - HRB400 |
Beijing |
4,070 |
627.6 |
-50 |
-8.6 |
Guangzhou |
4,690 |
723.2 |
-80 |
-13.4 |
|
Shanghai |
4,320 |
666.2 |
-130 |
-21.0 |
|
Average price |
4,360.0 |
672.3 |
-87 |
-14.3 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
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