Cold weather impacts local Chinese rebar and wire rod market

During the week ending January 25, rebar prices have indicated a declining trend in Beijing, while moving on a stable trend in other regions of China. Wire rod prices have moved on a slight uptrend in Beijing and Shanghai, though remaining stable in Guangzhou. Transaction activity in the domestic rebar and wire rod market has been at low levels. On January 25, rebar futures contract (1605) offers closed at RMB 1,840/mt ($280/mt) at Shanghai Futures Exchange, up $1/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, China has been hit by very cold temperatures and snowy weather, resulting in a halt in construction activities and negatively affecting rebar prices. However, wire rod has been in short supply in the spot market, resulting in slight rises in offer prices. While some improvement in the weather conditions may be seen this week, the approach of the Chinese New Year holiday (February 8-14) means that construction sites will gradually suspend their activities, which will cause consumption of rebar and wire rod to slacken further. It is thought that prices of rebar and wire rod in the Chinese domestic market will likely move on a stable trend in the coming week amid increasing sluggishness of activity.

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 6.58