Local Chinese rebar and wire rod prices move down

During the week ending October 21, average prices of Chinese domestic rebar and wire rod have moved down, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On October 21, rebar futures contract (2001) offers closed at RMB 3,290/mt ($465/mt) at Shanghai Futures Exchange, down $9/mt or 1.85 percent 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

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

 Wire rod prices in local markets

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

SteelOrbis has been informed that the ex-China HRB400 grade 20 mm rebar export price is currently at $440-450/mt FOB, down $15/mt over the past week, while Chinese export offer prices for wire rod have edged down by $12.5/mt to $460-470/mt FOB over the same period.

During the given week, rebar futures prices in China have moved down, exerting a negative impact on the domestic rebar and wire rod market. Meanwhile, inventories of rebar and wire rod have decreased slightly, while the capacity utilization rates on rebar and wire rod producers’ side have indicated minor increases. On October 21, Chinese major steelmaker Shagang Group decreased its offer prices for rebar by RMB 100/mt ($14/mt), while keeping its wire rod prices stable, signaling the producer’s more downbeat assessment of the prospects for long steel demand in late October. It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week. 

$1=RMB 7.068