Improved demand and increased optimism in local Chinese rebar and wire rod market

Monday, 14 April 2014 18:01:56 (GMT+3)   |   Shanghai
During the week ending April 14, rebar and wire rod prices in the Chinese domestic market have indicated a significant overall rise, with relatively larger increases witnessed in rebar prices. Meanwhile, transaction activity has remained at high levels. On April 14, rebar futures contract (1410) offers closed at RMB 3,360/mt ($549/mt) at Shanghai Futures Exchange, down by $2/mt week on week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.

Inventories of rebar and wire rod in the Chinese domestic market have decreased considerably as demand from downstream users has continued to improve. Accordingly, support for domestic rebar and wire rod prices has strengthened. Major Chinese long products producer Shagang Group has lately raised its ex-works prices for rebar and wire rod, and this has exerted a positive influence on the local market. Domestic steel mills and traders in China are increasingly optimistic on the future prospects for the market. It is expected that rebar and wire rod prices in China will continue their rising trend in the coming week against the backdrop of the peak season for demand.


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