Local Chinese rebar and wire rod market faces slacker demand

Monday, 01 December 2014 15:28:20 (GMT+3)   |   Shanghai
During the week ending December 1, in the Chinese domestic market rebar prices in Beijing and Guangzhou have indicated an uptrend, while rebar prices in Shanghai have followed a stable trend. In addition, in the given week, domestic wire rod prices in China have moved on a declining trend in Guangzhou, indicating a rising movement in Beijing, while trending sideways in Shanghai. Meanwhile, transaction activity for both rebar and wire rod in the Chinese domestic has been at poor levels. On December 1, rebar futures contract (1505) offers closed at RMB 2,521/mt ($409/mt) at Shanghai Futures Exchange, up $14/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.

During the given week, the rebar price rises in northern China have mainly been due to the flow of supplies from the north to southern China, which has eased supply pressure in the north. In addition, some traders in northern China have raised their offer prices due to improved sentiment after the announcement of increased benchmark interest rates in China, though transaction activity has not shown any improvement. However, the diverse trends of rebar and wire rod prices in eastern and southern China reflect the weakness of demand. In addition, the cold weather in China has resulted in slacker activity at construction sites and in reduced demand for long steel. It is expected that rebar and wire rod prices in the Chinese domestic market will edge down in the coming week.

$1 = RMB 6.15


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