Bearish sentiment in local Chinese rebar and wire rod market

Monday, 09 March 2015 17:15:31 (GMT+3)   |   Shanghai
       

During the week ending March 9, in the Chinese domestic market rebar and wire rod prices have indicated an overall declining trend, though rebar prices have remained stable in the Guangzhou market, while demand for both rebar and wire rod in the local Chinese market has seen some improvement, though it is still considered to be at insufficient levels. On March 9, rebar futures contract (1510) offers closed at RMB 2,486/mt ($397/mt) at Shanghai Futures Exchange, down $15/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.
 
During the given week, since demand from construction sites has been slow to improve after the recent Spring Festival holiday, inventories of rebar and wire rod have increased and rebar and wire rod prices in the Chinese domestic market have indicated significant declines. Meanwhile, rebar futures prices in the given week have decreased sharply, also exerting a negative impact on rebar spot market prices. Activities of steelmakers and traders have resumed gradually, though transaction volumes have only indicated a slight improvement and are still on the low side. Amid weakness of iron ore prices and bearish sentiment, it is expected that rebar and wire rod prices in the Chinese domestic market will move on a slight downtrend in the coming week. 
 

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