During the week ending October 13, rebar prices in northern China have moved on a downtrend, with rebar prices in eastern and southern China indicating a rebound, while wire rod prices in southern China have followed a slight rising trend, with wire rod prices elsewhere in the country moving sideways. Overall transaction activity for both rebar and wire rod in China has mostly improved compared to the previous week. On October 13, rebar futures contract (1501) offers closed at RMB 2,663/mt ($435/mt) at Shanghai Futures Exchange, up $21/mt compared to the levels recorded just before the National Day Holiday (October 1-7). Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
With the weather becoming cold in northern China, rebar consumption in the region has contracted, thereby exerting a negative impact on rebar and wire rod prices in northern China. At the same time, rebar prices in eastern and southern China have rebounded as construction sites have increased their purchases in order to replenish their inventories. After the National Day Holiday, rebar futures prices and iron ore futures prices in China have moved on a rising trend, with bullish sentiment prevailing in the domestic rebar market. As for the coming week, it is thought that rebar and wire rod prices in northern China will likely indicate a slight downtrend, while rebar and wire rod prices in eastern and southern China are expected to move on an upward trend.