Diverse trends in local Chinese rebar and wire rod market

During the week ending November 9, rebar and wire rod prices have indicated diverse trends in local markets in China, with prices in northern China seeing declines due to slack demand amid cold weather conditions, while transaction activity in the overall domestic rebar and wire rod market has continued to be at decent levels, though slackening in northern China. On November 9, rebar futures contract (1601) offers closed at RMB 1,850/mt ($291/mt) at Shanghai Futures Exchange, up $7/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, winter weather conditions have observed seen in northern China, while Beijing has even seen its first snowfall of the winter, and so demand for rebar and wire rod in northern China has been negatively impacted, resulting in declines in rebar and wire rod prices in the region. Rebar and wire rod consumption in southern China has been at decent levels, with prices indicating slight rises. Transaction activity for both rebar and wire rod in eastern China has been relatively quiet, with rebar prices moving sideways, while wire rod prices in the region indicating declines. In the long term, the Chinese steel industry will remain under strong pressure as China’s economic growth is unlikely to continue its rapid pace of growth. It is thought that rebar and wire rod prices in the Chinese domestic market will likely indicate a slight downtrend in the coming week as consumption will slow down due to colder weather conditions. 

 

 

 

All prices include 17 percent VAT and all prices are ex-warehouse.

 

$1 = RMB 6.36