Local Chinese rebar slightly up amid production tightening

During the week ending September 27, average Chinese domestic rebar prices have edged up, while wire rod prices have moved sideways. Gradually rising trend in rebar futures prices and restriction for crude steel production have been still supporting prices.

From the first day after the holidays – September 22 to September 27, the average rebar price has gained RMB 30/mt, while the average wire rod price has remained stable.  

During the given week, production restrictions continued in some regions of China, bolstering market players’ sentiments. Ahead of the National Day holiday (October 1-7), some downstream users may build up stock for rebar and wire rod, which will provide certain support to their prices. However, the supply of rebar and wire rod is expected to increase after the long holiday as production restriction measures in some areas will expire at the end of September. It is thought that rebar and wire rod prices will edge up ahead of the long holiday, while prices will see downward pressure after the holiday.

On September 27, rebar futures contract (2105) offers closed at RMB 5,564/mt ($860/mt) at Shanghai Futures Exchange, up RMB 86/mt ($13.3/mt) or by 1.6 percent compared to that recorded on September 17, signaling market players’ bullish sentiments towards the prospect for the future rebar market.

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 6.4695