During the week ending January 19, in the Chinese domestic market
rebar and
wire rod prices have continued to indicate a sharp declining trend, while transaction activity for both
rebar and
wire rod in the local Chinese market has been slack. On January 19,
rebar futures contract (1505) offers closed at RMB 2,516/mt ($405/mt) at Shanghai Futures Exchange, up $1/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, domestic
rebar and
wire rod producers have been under strong pressure due to their high inventory levels and so they have cut their ex-works prices, also as they seek to bring in more cash before the Spring Festival holiday (February 18-24). Some workers at construction sites have started their holiday early, resulting in reduced activity at construction sites and thereby negatively impacting demand for
rebar and
wire rod and contributing to the softening of prices for these products. Most traders are still reluctant to build up their inventories as they are not sure when
rebar and
wire rod prices will touch the bottom. It is expected that
rebar and
wire rod prices in the Chinese domestic market will continue their downward movement in the coming week.