Rising trend in local Chinese rebar and wire rod market

During the week ending August 3, in the Chinese domestic market rebar and wire rod prices have indicated a significant increase, while overall transaction activity in the domestic rebar and wire rod market has been better than in the previous week, though remaining at low levels. On August 3, rebar futures contract (1510) offers closed at RMB 2,114/mt ($340/mt) at Shanghai Futures Exchange, up $14/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

The main steelmakers in eastern China have all increased their ex-works prices, contributing to the rises in market prices. Meanwhile, inventory levels of rebar and wire rod on the traders' side have been at comparatively low levels, exerting a positive impact on rebar and wire rod prices. In addition, construction sites and traders have stepped up their purchase activities to some extent. Moreover, iron ore prices have rebounded a little, also providing support for rebar and wire rod. It is thought that rebar and wire rod prices in the Chinese domestic market will likely rebound in the coming week, though some downticks could also be seen due to the influence of weak demand.

Wire rod prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse

$1 = RMB 6.21

Rebar prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.21