During the week ending January 26, in the Chinese domestic market rebar and wire rod prices have continued to indicate a declining trend, while transaction activity for both rebar and wire rod in the local Chinese market has been slack. On January 26, rebar futures contract (1505) offers closed at RMB 2,450/mt ($391/mt) at Shanghai Futures Exchange, down $12/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 demand for rebar and wire rod has continued to shrink, causing traders to lower their sales prices. Since inventory levels of rebar and wire rod at both steelmakers and traders have been rising, steelmakers have had to cut their ex-works prices for rebar and wire rod, against the background of the ongoing sluggishness of transaction activity and bearish sentiment. Cold and snowy weather is anticipated in the coming week, which will weaken demand for rebar and wire rod, while the Spring Festival holiday is also approaching. It is expected that rebar and wire rod prices in the Chinese domestic market will continue their downtrend in the week ahead.
$1 = RMB 6.26