During the week ending July 7, rebar and wire rod prices in the Chinese domestic market have mostly moved sideways, except in southern China where slight price declines have been observed, while overall transaction activity for rebar and wire rod has remained at poor levels. On July 7, rebar futures contract (1410) offers closed at RMB 3,075/mt ($496/mt) at Shanghai Futures Exchange, almost unchanged week on week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
During the given week, a major steelmaker in southern China, Shaoguan Iron and Steel, decreased its ex-works prices, resulting in small declines in rebar and wire rod prices in the southern market. Rebar and wire rod prices in other regions of China have not indicated any big changes.
Since the beginning of this month, Chinese financial institutions have loosened their credit policies to some extent. Meanwhile, some provinces in China have announced key infrastructure projects, providing support for rebar and wire rod prices. With raw material prices showing greater stability, some traders think that local rebar and wire rod prices may indicate some rebound since they have been at low levels for a long time. Also, it is expected that Chinese domestic rebar and wire rod prices will receive increased support from the demand side as the rainy season ends in the middle and lower reaches of the Yangtze River.