Consumption to improve in local Chinese rebar and wire rod market

During the week ending October 10, Chinese domestic rebar and wire rod prices have risen in Guangzhou, though remaining stable in other regions, while transaction activity in the local rebar and wire rod market has been at low levels after Chinese National Holiday (October 1-7). On October 10, rebar futures contract (1701) offers closed at RMB 2,270/mt ($339/mt) at Shanghai Futures Exchange, down $9/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, since consumption for rebar and wire rod has been slack during long National Holiday (October 1-7), rebar and wire rod prices have basically moved sideways. However, domestic rebar in Guangzhou increased in the first trading day after holiday as traders in Guangdong Province are holding an optimistic view of the future prospects for the domestic rebar and wire rod market.

The temperature has dropped to the moderate level in China, which is good for constructions, and will improve consumption. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up 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 6.70