Improved activity in local Chinese rebar and wire rod market ahead of holiday

During the week ending September 28, rebar and wire rod prices have indicated a declining trend in the Beijing market, though moving on a stable trend in Guangzhou and Shanghai, while overall transaction activity in the domestic rebar and wire rod market has been better than in the previous week and is at decent levels. On September 28, rebar futures contract (1601) offers closed at RMB 1,857/mt ($292/mt) at Shanghai Futures Exchange, down $6/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, many rebar and wire rod producers in northern China have increased their supply volumes, resulting in declines in prices in the region. Meanwhile, ahead of the National Day Holiday (October 1-7) construction sites have increased their purchases of rebar and wire rod, providing support for the stable movement of prices in eastern and southern China.
 
Although some rebar and wire rod producers are planning to restrict their outputs, the oversupply situation in the Chinese domestic rebar and wire rod market is unlikely to change. In the meantime, most construction sites have completed their inventory replenishments for the holiday period. It is expected that rebar and wire rod prices in the Chinese domestic market will likely indicate a slight downtrend or 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 VAT and all prices are ex-warehouse.
 
$1 = RMB 6.37