Local Chinese rebar and wire rod market impacted by strong supply

During the week ending May 16, Chinese domestic rebar and wire rod prices have indicated sharp decreases, while transaction activity in the domestic rebar and wire rod market has been at low levels. On May 16, rebar futures contract (1610) offers closed at RMB 2,078/mt ($318/mt) at Shanghai Futures Exchange, down $16/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

Due to previous rises seen in domestic prices of rebar and wire rod, Chinese steelmakers resumed operations at production facilities which had been idled or where production activity had been suspended, thereby increasing supply to the domestic rebar and wire rod market, which in turn has exerted a negative impact on rebar and wire rod prices. Meanwhile, bearish sentiment has prevailed in the rebar and wire rod market, also negatively influencing prices. Currently, purchases from construction sites are at normal volumes, while supply pressure dominates the market. It is expected that rebar and wire rod prices in the Chinese domestic market will soften further 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

$1 = RMB 6.52