During the week ending March 10, rebar and wire rod prices in the Chinese domestic market have softened further, while transaction activity has indicated a certain degree of recovery. On March 10, rebar futures contract (1410) offers closed at RMB 3,290/mt ($536/mt) at Shanghai Futures Exchange, decreasing by $22/mt week on week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
In the given week, the ongoing downward movement in Chinese domestic rebar and wire rod prices has stimulated a certain degree of recovery in transaction activity, resulting in slight declines in domestic market inventory. Long steel futures prices in China have indicated a significant decline, negatively impacting sentiment in the spot market as well as spot market prices. Meanwhile, prices of raw materials, such as iron ore and coke, have also indicated decreases, putting downward pressure on the steel market. Most steel mills have lowered their ex-works prices in order to boost sales, resulting in reduced support for rebar and wire rod spot market prices. It is thought that rebar and wire rod prices in the Chinese domestic market are unlikely to rebound in the short term.