As of November 27, average Chinese domestic rebar and wire rod prices have edged up slightly compared to last week as traders have been unwilling to sell at lower prices, while demand has not been sufficient to support more significant increases.
The average rebar price has increased by RMB 7/mt ($1/mt) compared to November 20, while the average 6.5 mm HPB 300 wire rod price has seen a rise of RMB 23/mt ($3.2/mt). Rebar prices have remained stable compared to Friday, November 24.
Rebar and wire rod prices in the Chinese domestic market have edged up slightly as rebar futures prices rose at the beginning of the given week, though indicating declines later because the Price Division of China’s National Development and Reform Commission (NDRC), the Price Supervision and Competition Bureau of the State Administration for Market Regulation, and the Futures Department of the China Securities Regulatory Commission requested that the relevant enterprises should operate in accordance with the law, and not disseminate information about price hikes, aiming to cool down speculation in the iron ore market. Traders in the rebar and wire rod market have been unwilling to sell at lower prices, providing support for prices. However, demand for rebar and wire rod has slackened gradually in the traditional offseason, which will likely result in increasing inventory levels and weaken the support for prices. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range at high levels in the coming week.
On November 27, rebar futures contract (rb2401) offers closed at RMB 3,959/mt ($556/mt) at Shanghai Futures Exchange, decreasing by RMB 24/mt ($3.4/mt) or 0.6 percent compared to November 20, while rising by 0.56 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,930 |
552.6 |
10 |
5.2 |
|
Guangzhou |
4,190 |
589.1 |
30 |
8.2 |
|
|
Shanghai |
4,030 |
566.6 |
-20 |
1.1 |
|
|
Average price |
4,050.0 |
569.5 |
7 |
4.8 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,550 |
639.8 |
20 |
7.2 |
|
Guangzhou |
4,500 |
632.7 |
60 |
12.7 |
|
|
Shanghai |
4,600 |
646.8 |
-10 |
3.0 |
|
|
Average price |
4,550.0 |
639.8 |
23 |
7.6 |
|
|
8 - HPB300 |
Beijing |
4,370 |
614.5 |
20 |
7.0 |
|
Guangzhou |
4,440 |
624.3 |
60 |
12.7 |
|
|
Shanghai |
4,300 |
604.6 |
-10 |
2.7 |
|
|
Average price |
4,370.0 |
614.5 |
23 |
7.5 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1159