Local Chinese rebar and wire rod prices slightly down on negative sentiments

Monday, 14 October 2019 16:11:53 (GMT+3)   |   Shanghai
       

During the week ending October 14, average prices of Chinese domestic rebar and wire rod have mostly moved down, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels.

During the given week, market players have been cautious towards prospect for the future rebar and wire rod market as following the week-long holiday the inventory level has risen slightly and demand has not improved as market players expected. Meanwhile, rebar and wire rod producers’ capacity utilization rates have gradually increased, which negatively affected the market.

On October 14, rebar futures contract (2001) offers closed at RMB 3,352/mt ($474/mt) at Shanghai Futures Exchange, down $17/mt or 3.4 percent week on week, signaling about negative market outlook

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 
($/mt)

Weekly change 
(RMB/mt)

Weekly change 
($/mt)

Rebar

25

HRB400

Beijing

Hebei Steel

3,650

516

+10

+1.4

Guangzhou

Shaoguan Steel

4,210

595.2

+20

+2.8

Shanghai

Shente

3,760

531.6

-50

-7.1

Average price

 

3,873

547.6

-7

-0.9

    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 
($/mt)

Wire rod

6.5

HPB300

Beijing

Hebei Steel

4,550

643.3

-30

-4.2

Guangzhou

Shaoguan Steel

4,250

600.9

0

0

Shanghai

Shente Steel

4,090

578.3

-20

-2.8

Average price

 

4,296

607.5

-17

-2.4

8

HPB300

Beijing

Hebei Steel

4,400

622.1

-30

-4.2

Guangzhou

Shaoguan Steel

4,200

593.8

0

0

Shanghai

Shente Steel

4,090

578.3

-20

-2.8

Average price

 

4,230

598.0

-17

-2.4

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

Some reduction in the local prices has not made suppliers more active in the export market. SteelOrbis has been informed that the ex-China HRB400 grade 20 mm rebar export price has been at $450-470/mt FOB actual weight basis, which is at least $40/mt below the workable offers from Middle East exporters in Singapore. Prices for ex-China wire rod have been at $470-480/mt FOB during the last week. But it have stayed uncompetitive in the international market. 

$1=RMB 7.07


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