Local Chinese rebar prices shoot up by $56/mt today, up over $80/mt week on week

As of September 30, average Chinese domestic rebar and wire rod prices have seen sharp rises by over $50/mt today, Monday, September 30, following significantly increases in rebar futures prices amid fresh supportive measures for the real estate market announced on Sunday. Market sources are also optimistic for the post-holiday period, though the latest prices increases have been assessed as exaggerated.

The average rebar price has increased by RMB 563/mt ($80.4/mt) compared to September 23, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 483/mt ($69/mt) week on week. Rebar prices have increased by RMB 390/mt ($56/mt) compared to the previous trading day, September 27.

During the given week, rebar and wire rod prices in the Chinese domestic market have seen significant increases amid a series of stimulus policies issued by the People’s Bank of China, for instance, the cutting the reserve requirement ratio (RRR) for Chinese banks by 0.5 percentage points and decreasing the open market seven-day reverse repurchase operation rate by 20 basis points to 1.5 percent, both effective as of September 27. At the same time, a number of first-tier cities in China have issued stimulus policies for the real estate sector, facilitating home purchases, which will exert a positive impact on domestic demand growth. The improvement in the real estate industry is anticipated to stimulate the demand for rebar and wire rod.

Meanwhile, rebar futures prices have continued to see sharp increases since September 24, and even indicated a rise of 6.99 percent on September 30, bolstering market sentiments firmly. Ahead of the long National Day holiday (October 1-7), some downstream users have built up stocks of rebar and wire rod, providing solid support for prices.

As of September 30, rebar futures at Shanghai Futures Exchange are standing at RMB 3,551/mt ($507/mt), increasing by RMB 464/mt ($66.3/mt) or 15.0 percent since September 23, while up 6.99 percent compared to the previous trading day, September 27.

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 7.0074