Adverse weather conditions impact local Chinese rebar and wire rod market

During the week ending July 25, Chinese domestic rebar and wire rod prices have indicated an overall downtrend, while transaction activity in the domestic rebar and wire rod market has slackened and is now at low levels. On July 25, rebar futures contract (1610) offers closed at RMB 2,342/mt ($350/mt) at Shanghai Futures Exchange, down $3/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, the hot weather along the middle and lower reaches of the Yangtze river after the rainy season has seriously affected activities at construction sites in the region. In northern China, heavy rainfall has caused floods, resulting in lower demand for rebar and wire rod and exerting a negative impact on rebar and wire rod prices. Meanwhile, rebar and wire rod inventories in the overall market have increased, reflecting the reduced consumption of rebar and wire rod. The hot weather conditions along the middle and lower reaches of the Yangze river are expected to continue in the coming week, while northern China is expected to continue to see rainy weather. It is thought that rebar and wire rod prices in the Chinese domestic market will likely continue their downward movement 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