Downward movements in local Chinese rebar and wire rod market

During the week ending August 15, Chinese domestic rebar and wire rod prices have mostly indicated a downward trend, though rebar prices in Shanghai and wire rod prices in Beijing seeing slight rises, while transaction activity in the domestic rebar and wire rod market has been at medium levels. On August 15, rebar futures contract (1610) offers closed at RMB 2,571/mt ($387/mt) at Shanghai Futures Exchange, down $5/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, high temperatures in excess of 35 degrees centigrade have been experienced in many parts of China, negatively affecting real demand for rebar and wire rod. Meanwhile, inventory levels of rebar and wire rod have risen slightly. Amid recent confidence as regards the future prospects for the market, suppliers have been trying their best to keep prices stable. However, following the rises seen lately in domestic prices of rebar and wire rod, local steelmakers' production capacity utilization rates are now higher, increasing the pressure on the market from the supply side. At the same time, rebar futures prices have indicated downward corrections, and this also exerted a negative impact on rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week.

Wire rod prices in local Chinese market

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

Rebar prices in local Chinese market

All prices include 17 percent

$1 = RMB 6.63