Negative factors impact local Chinese rebar and wire rod market

Monday, 26 August 2019 15:20:40 (GMT+3)   |   Shanghai
       

During the week ending August 26, average prices of Chinese domestic rebar and wire rod have moved down, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On August 26, the most traded rebar futures contract (2001) offers closed at RMB 3,372/mt ($478/mt) at Shanghai Futures Exchange, down $14/mt week on week. 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

3,610

511

-40

-6

Guangzhou

Shaoguan Steel

4,030

571

-20

-3

Shanghai

Shente

3,660

518

-80

-11

Average price

 -

3,766.7

533.5

-47

-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 
($/mt)

Wire rod

6.5

HPB300

Beijing

Hebei Steel

4,630

656

-10

-1

Guangzhou

Shaoguan Steel

4,210

596

-20

-3

Shanghai

Shente Steel

3,930

557

-80

-11

Average price

 -

4,256.7

603

-37

-5

8

HPB300

Beijing

Hebei Steel

4,480

635

-10

-1

Guangzhou

Shaoguan Steel

4,160

589

-20

-3

Shanghai

Shente Steel

3,930

557

-80

-11

Average price

 -

4,190.0

593.5

-37

-5

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

 

In the given week, rebar futures prices in China have indicated a downward correction, exerting a negative impact on the local rebar and wire rod market. Meanwhile, demand for rebar and wire rod has been slack due to the ongoing high temperatures. Moreover, US-China trade tensions have escalated again since August 23, negatively affecting sentiment in the rebar and wire rod market. It is expected that rebar and wire rod prices in the Chinese domestic market will edge down further in the coming week. 

$1 = RMB 7.06


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