Activty slackens further in local Chinese rebar and wire rod market

During the week ending August 29, Chinese domestic rebar and wire rod prices have mostly moved up slightly, though remaining stable in some areas, while transaction activity in the domestic rebar and wire rod market has been slacker than in the previous week and is now at low levels. On August 29, rebar futures contract (1610) offers closed at RMB 2,513/mt ($377/mt) at Shanghai Futures Exchange, down $2/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, despite supply-side reforms and also production restrictions ahead of the G20 Summit in Hangzhou, inventories of rebar and wire rod in China have increased due to slack demand from downstream users, thereby exerting some negative pressure on domestic rebar and wire rod prices, which have indicated smaller increases compared to the previous week. Meanwhile, some downticks have been observed in rebar futures prices in China. At present, traders in the domestic rebar and wire rod market are mostly maintaining a wait-and-see stance. It is thought that domestic rebar and wire rod prices in China will likely indicate a downward trend 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

$1 = RMB 6.68