In the week ending January 15, average Chinese domestic rebar and wire rod prices have continued their downtrend amid declining rebar futures prices and sharply rising inventory levels, while the expected monetary stimulus has not been implemented so far and raw material prices have also been under pressure.
The average rebar price has declined by RMB 37/mt ($5.2/mt) compared to January 8, while the average 6.5 mm HPB 300 wire rod price has seen a correction by RMB 27/mt ($3.8/mt). Rebar prices have lost RMB 14/mt compared to Friday, January 12.
During the given week, rebar and wire rod prices in the Chinese domestic market have moved down amid the slackening demand from construction sites. However, some traders have planned to build up stocks for the winter season, providing support to prices and preventing more drastic price falls. Most steelmakers have reduced production activities, though inventory levels of rebar and wire rod have increased significantly amid the ongoing demand-supply imbalance. The production of rebar and wire rod will likely decrease further in the coming period, while demand from downstream users may remain sluggish.
On Monday, January 15, China's central bank has left the medium-term interest rates unchanged, though all the previous week the expectations were for an interest rate cut.
It is expected that rebar and wire rod prices in the Chinese domestic market will edge down further in the coming week.
On January 15, rebar futures contract (rb2405) offers closed at RMB 3,896/mt ($556/mt) at Shanghai Futures Exchange, decreasing by RMB 54/mt ($7.6/mt) or 1.2 percent compared to January 8, while decreasing by 0.49 percent compared to the previous trading day.
Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.
Rebar prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price |
Weekly change |
Weekly change |
|
25 - HRB400 |
Beijing |
3,840 |
540.2 |
-40 |
-6.2 |
|
Guangzhou |
4,220 |
593.7 |
-30 |
-4.8 |
|
|
Shanghai |
3,890 |
547.3 |
-40 |
-6.2 |
|
|
Average price |
3,983.3 |
560.4 |
-37 |
-5.7 |
All prices include 13 percent VAT and all prices are ex-warehouse.
Wire rod prices in local markets
|
Spec. (mm) - Category |
City |
Price (RMB/mt) |
Price ($/mt) |
Weekly change (RMB/mt) |
Weekly change |
|
6.5 - HPB300 |
Beijing |
4,470 |
628.9 |
-60 |
-9.1 |
|
Guangzhou |
4,530 |
637.3 |
-30 |
-4.9 |
|
|
Shanghai |
4,450 |
626.1 |
10 |
0.8 |
|
|
Average price |
4,483.3 |
630.7 |
-27 |
-4.4 |
|
|
8 - HPB300 |
Beijing |
4,290 |
603.5 |
-60 |
-9.0 |
|
Guangzhou |
4,470 |
628.9 |
-30 |
-4.8 |
|
|
Shanghai |
4,150 |
583.8 |
10 |
0.8 |
|
|
Average price |
4,303.3 |
605.4 |
-27 |
-4.4 |
All prices include 13 percent VAT and all prices are ex-warehouse.
$1 = RMB 7.1084