Chinese rebar and wire rod markets accelerate their downtrend

Monday, 14 May 2012 15:29:50 (GMT+3)   |  
In the past week, the Chinese rebar and wire rod markets have accelerated their downward movements. Meanwhile, on May 14 the rebar futures 1210 contract price closed at RMB 4,135/mt ($656/mt).

As of May 14, the average price of HRB 400 rebar in the Chinese domestic market is standing at $669.8/mt, while the average price of HRB 335 rebar is at $656.1/mt. Meanwhile, the average price of 8 mm high speed wire rod is standing at $657.7/mt. Local rebar and wire rod prices in the local Chinese markets can be viewed in the SteelOrbis price reports section.

As no price rebound has been observed in the Chinese rebar and wire rod markets after the May Day holiday, confidence levels among players in these markets have declined. Some traders are in a hurry to sell off materials and so prices have decreased. Transaction volumes have increased somewhat in line with lower prices, but demand still remains soft. In addition, there were significant arrivals of new materials in the market in April and this has increased the downward pressure on the market. It is expected that the Chinese rebar and wire rod markets will continue to move down in the coming weeks.


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