Hot weather depresses activity in local Chinese rebar and wire rod market

During the week ending July 27, in the Chinese domestic market rebar and wire rod prices have seen a mostly stable trend amid rises in some regions, while overall transaction activity in the domestic rebar and wire rod market has been weaker than in the previous week and remains at low levels. On July 27, rebar futures contract (1510) offers closed at RMB 2,027/mt ($326/mt) at Shanghai Futures Exchange, down $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, some rebar and wire rod prices have continued their slight uptrend since last week as most steelmakers have increased their ex-works prices for rebar and wire rod. However, due to high temperatures, consumption of rebar and wire rod has been sluggish. Market participants think that the anticipated hike in interest rates in the US will exert negative pressure on commodities, including iron ore, which will in turn negatively affect finished steel prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate in a downward direction 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 VAT and all prices are ex-warehouse.

$1 = RMB 6.21