Local Chinese rebar and wire rod prices up by over $50/mt after holiday

During the week ending February 22, average Chinese domestic rebar and wire rod prices have moved up sharply, by more than $50/mt, amid improved demand, bullish expectations, and higher billet and iron ore prices.

During the given period, the average rebar price in China has gained RMB 333/mt or $52.9/mt, while the average wire rod price has risen by RMB 343/mt.

During the given week, rebar and wire rod prices have moved up sharply amid increasing rebar futures prices in China and the prevailing bullish sentiments following the long Chinese New Year holiday. Demand from downstream users has started to revive, with many buyers returning to the market, but it has not recovered to normal levels yet as many construction projects will come back on stream after the Lantern Festival (February 26), which will result in better demand next week.

On February 22, rebar futures contract (2105) offers closed at RMB 4,582/mt ($671/mt) at Shanghai Futures Exchange, up RMB 247/mt ($38.3/mt) or by 5.7 percent compared to February 8 and up by 1.1 percent compared to the previous trading day (February 19), signaling market players’ bullish sentiments as regards the future prospects for the rebar market.

The strong billet and iron ore markets are supporting rebar prices from the cost side.

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.

$1 = RMB 6.4563