Local Chinese rebar and wire rod market sees some improvement in activity

During the week ending August 1, Chinese domestic rebar and wire rod prices have increased following previous declines, while transaction activity in the domestic rebar and wire rod market has been better than in the previous week, though it is still on the low side. On August 1, rebar futures contract (1610) offers closed at RMB 2,495/mt ($376/mt) at Shanghai Futures Exchange, up $26/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, China's Ministry of Environmental Protection has commenced implementation of special environmental protection examinations for key domestic steel enterprises, giving rise to speculation in the domestic steel market. Steelmakers and traders have raised their sales prices for rebar and wire rod. Meanwhile, rebar futures prices have mostly been moving on a rising trend, while declines recorded on the last trading day of July were followed by significant increases today, August 1, which will exert a positive impact on the mood in the domestic rebar and wire rod market. Under these circumstances, buyers have stepped up their purchases of rebar and wire rod as they think there may be further increases in rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely continue their upward trend 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 6.64