Activity still at low levels in local Chinese rebar and wire rod market

During the week ending February 6, Chinese domestic rebar and wire rod prices have mostly remained stable, though rebar prices in Beijing have increased, while transaction activity in the domestic rebar and wire rod market has remained at low levels. On February 6, rebar futures contract (1705) offers closed at RMB 3,082/mt ($447/mt) at Shanghai Futures Exchange, down $14/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, transaction activity has been at very low levels, while prices have mostly moved on a stable trend. Although the holiday period has ended, many traders have not returned to the market yet. It is expected that finished steel prices will likely edge up when all traders have returned to the market, but time will be needed for demand to pick up in the rebar and wire rod market. However, a decline was seen in ferrous metal futures prices in China right after the holiday, exerting some negative pressure on rebar and wire rod prices in the domestic spot market. Market players are mostly maintaining a wait-and-see stance. It is thought that rebar and wire rod prices in the Chinese domestic market may indicate some slight fluctuations in the coming week.

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 VAT and all prices are ex-warehouse
 
$1 = RMB 6.86