Inventory increases in local Chinese rebar and wire rod market

During the week ending October 12, average rebar and wire rod prices have moved on a decreasing trend in the Chinese domestic market, though rebar prices have followed a stable trend in the northern and eastern regions of the country, while overall transaction activity in the domestic rebar and wire rod market has been somewhat better compared to the previous week. On October 12, rebar futures contract (1601) offers closed at RMB 1,847/mt ($293/mt) at Shanghai Futures Exchange, up $1/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, the domestic rebar and wire rod market has continued to be characterized by oversupply, while demand has remained on the slack side, contributing to the declining trend of rebar and wire rod prices after the long holiday, although rebar prices in northern and eastern China have remained stable as they were already at low levels. Inventory levels of rebar and wire rod have increased. However, China has eased its monetary policy, which will exert a positive impact on the steel market. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move on a stable trend in the coming week. 

 

 

 

All prices include 17 percent VAT and all prices are ex-warehouse

 

 

 

All prices include 17 percent VAT and all prices are ex-warehouse.

 

$1 = RMB 6.32