Dropping temperatures impact local Chinese rebar and wire rod market

During the week ending November 23, rebar and wire rod prices have continued their downtrend in local markets in China, with larger declines seen in eastern China due to the ongoing rainy weather affecting demand from construction sites. Transaction activity in the domestic rebar and wire rod market has generally been slacker than in the previous week in northern and eastern China, where it is now at low levels, whereas activity is still at decent levels in southern China. On November 23, rebar futures contract (1601) offers closed at RMB 1,659/mt ($259/mt) at Shanghai Futures Exchange, down $15/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, rainy weather has continued to be observed in eastern China, negatively affecting activity at construction sites, thereby exerting a negative impact on rebar and wire rod prices in the region. Meanwhile, dropping temperatures and snowy weather in northern China have negatively influenced the local rebar and wire rod market. Due to poor transaction activity in northern China, some supplies have been directed to southern China, dragging down prices there. It is thought that rebar and wire rod prices in the Chinese domestic market will continue their downtrend in the coming week amid dropping weather temperatures.

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 VAT and all prices are ex-warehouse.
 
$1 = RMB 6.40