Local Chinese rebar and wire rod market sees slacker transaction activity

During the week ending August 22, Chinese domestic rebar and wire rod prices have indicated an upward trend, while transaction activity in the domestic rebar and wire rod market has been slacker than in the previous week, though remaining at medium levels. On August 22, rebar futures contract (1610) offers closed at RMB 2,524/mt ($379/mt) at Shanghai Futures Exchange, down $8/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, since G20 Summit is approaching, steelmakers in the provinces of Jiangsu, Zhejiang and Anhui have started to implement production cuts, providing a certain degree of support for rebar and wire rod prices. Meanwhile, iron ore prices have edged up, boosting prices of rebar and wire rod from the cost side. However, due to high temperatures and restrictions on construction activities because of the G20 Summit, consumption of rebar and wire rod has been slacker. At the same time, rebar futures prices have indicated some downward corrections. It is thought that rebar and wire rod prices will likely 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

$1 = RMB 6.66