As of November 6, average Chinese domestic rebar and wire rod prices have continued to increase, supported by the improved demand-supply balance and the further improvement in sentiments.
The average rebar price has increased by RMB 107/mt ($15/mt) compared to October 30, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 100/mt ($14/mt). Rebar prices have risen by RMB 33/mt ($4.6/mt) compared to November 3.
During the given week, rebar and wire rod prices in the Chinese domestic market have continued their upward trend amid increasing rebar futures prices. More market players have participated in transaction activities, which has pushed up rebar and wire rod prices. Moreover, reports of lower production have also supported sentiments. The China Iron and Steel Association (CISA) has reported that in late October daily crude steel output of large and medium-sized steel enterprises in China dropped by 5.65 percent compared to mid-October. The sentiments in the rebar market have been also supported by the recent positive news in the real estate segment. The second largest property developer by sales value, Vanke, is expected to be “under protection of the government”, according to news shared by market sources on November 6, and the major shareholder inject over RMB 10 billion ($1.38 billion) in new cashflow.
However, since cold weather is expected to hit China from November 6, demand for rebar and wire rod will slacken, which will exert a negative impact on prices. It is thought that rebar and wire rod prices will likely rise slightly in the coming week, but that they will come under downward pressure in the longer term.
On November 6, rebar futures contract (rb2401) offers closed at RMB 3,805/mt ($530/mt) at Shanghai Futures Exchange, increasing by RMB 65/mt ($9/mt) or 1.7 percent compared to October 30, while rising by 0.58 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,840 |
534.8 |
60 |
8.2 |
|
Guangzhou |
4,020 |
559.9 |
110 |
15.2 |
|
|
Shanghai |
3,940 |
548.7 |
150 |
20.7 |
|
|
Average price |
3,933.3 |
547.8 |
107 |
14.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,490 |
625.3 |
60 |
8.2 |
|
Guangzhou |
4,320 |
601.7 |
80 |
11.0 |
|
|
Shanghai |
4,500 |
626.7 |
160 |
22.1 |
|
|
Average price |
4,436.7 |
617.9 |
100 |
13.8 |
|
|
8 - HPB300 |
Beijing |
4,310 |
600.3 |
60 |
8.2 |
|
Guangzhou |
4,260 |
593.3 |
80 |
11.0 |
|
|
Shanghai |
4,200 |
585.0 |
160 |
22.1 |
|
|
Average price |
4,256.7 |
592.9 |
100 |
13.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.178