Activity improves in local Chinese rebar and wire rod market

During the week ending September 26, Chinese domestic rebar prices have softened slightly in Guangzhou, though moving up in Shanghai and remaining stable in Beijing, while domestic wire rod prices have increased in Shanghai, though moving sideways in other regions. Transaction activity in the domestic rebar and wire rod market has been better than in the previous week and is now at decent levels. On September 26, rebar futures contract (1701) offers closed at RMB 2,316/mt ($347/mt) at Shanghai Futures Exchange, up $12/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

During the given week, as the National Day Holiday (October 1-7) is approaching, construction sites have stepped up their purchases, resulting in improved transaction activity and providing greater support for domestic rebar and wire rod prices. Meanwhile, after previous downward corrections, rebar futures prices in China have rebounded, resulting in reduced downward pressure on domestic spot market prices. It is thought that domestic rebar and wire rod prices will likely move sideways in the coming week, though they are expected to edge up after the holiday.

Wire rod prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse
 
Rebar prices in local Chinese market

All prices include 17 percent
 
$1 = RMB 6.67