During the week ending November 11, average prices of Chinese domestic rebar and wire rod have moved up, while transaction activity has been firm, supporting the uptrend. However, market sources doubt that a further visible price increase is possible.
Average rebar prices in the local market have increased by RMB 50/mt since last week, though rebar prices in Beijing have moved down slightly. 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 |
Weekly change |
Weekly change |
|
25 |
HRB400 |
Beijing |
Hebei Steel |
3,670 |
524.8 |
-10 |
+1.9 |
|
|
Guangzhou |
Shaoguan Steel |
4,350 |
622.1 |
+130 |
+22.4 |
|||
|
Shanghai |
Shente |
3,770 |
539.1 |
+30 |
+7.7 |
|||
|
Average price |
- |
3,930.0 |
562.0 |
+50 |
+10.7 |
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 |
|
Wire rod |
6.5 |
HPB300 |
Beijing |
Hebei Steel |
4,360 |
623.5 |
0 |
+4.0 |
|
Guangzhou |
Shaoguan Steel |
4,260 |
609.2 |
+20 |
+6.7 |
|||
|
Shanghai |
Shente Steel |
4,120 |
589.2 |
+30 |
+8.0 |
|||
|
Average price |
- |
4,246.7 |
607.3 |
+17 |
+6.3 |
|||
|
8 |
HPB300 |
Beijing |
Hebei Steel |
4,210 |
602.0 |
0 |
+3.8 |
|
|
Guangzhou |
Shaoguan Steel |
4,200 |
600.6 |
+20 |
+6.7 |
|||
|
Shanghai |
Shente Steel |
4,120 |
589.2 |
+30 |
+8.0 |
|||
|
Average price |
- |
4,176.7 |
597.3 |
+17 |
+6.2 |
All prices include 13 percent VAT and all prices are ex-warehouse.
During the given week, due to low inventory levels in the market, rebar and wire rod prices have mostly seen a rising trend. Recently, demand for rebar and wire rod from downstream users has been good, bolstering prices in the spot market. Meanwhile, rebar and wire rod output have declined slightly due to production restrictions. However, market players expect that there will be no sharp drop in output due to quite good profitability for rebar and wire rod producers. Accordingly, it is thought that rebar and wire rod prices in the Chinese domestic market will not go up much further.
On November 11, rebar futures contract (2001) offers closed at RMB 3,373/mt ($482/mt) at Shanghai Futures Exchange, down RMB 9/mt or 0.27 percent week on week. Moreover, rebar futures lost RMB 39/mt (5.6/mt) on Monday compared to the end of last week.
China’s long steel export prices have been stable so far and uncompetitive in the main sales destinations. Ex-China HRB400 grade 20 mm rebar export prices are at $440-450/mt FOB and offer prices for wire rod have moved sideways at $450-460/mt FOB during the past week. Moreover, firm demand and low prices from alternative sources have led to import deals signed for wire rod. Up to 100,000 mt of wire rod ex-Malaysia have been sold to China at $440-445/mt CFR.
$1=RMB 6.993