During the week ending August 4, rebar and wire rod prices in the Chinese domestic market have indicated a slight recovery, while overall transaction activity for rebar and wire rod has been better than previous week, at decent levels now. On August 4, rebar futures contract (1501) offers closed at RMB 3,106/mt ($503/mt) at Shanghai Futures Exchange, up $7/mt compared to the previous week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
Recently, Chinese stock market has shown a bullish trend, providing a certain support for steel futures market, stimulating steel spot market accordingly. During the given week, since output of steelmakers has still been at high levels and exerting pressure on inventory, some steelmakers slightly decreased their ex-works prices for rebar and wire rod to increase their sales. However, relaxation on housing restriction policy in some cities' real estate market has been a substantial good news for rebar and wire rod demand. It is expected that rebar and wire rod prices in the Chinese domestic market will move strong in the coming week.
$1 = RMB 6.18