During the week ending November 17, in the Chinese domestic market rebar prices in Beijing and Shanghai have indicated downward movement, while rebar prices in Guangzhou have followed an upward trend. In addition, in the given week, wire rod prices in Beijing have softened, with prices of wire rod indicating slight rises in Guangzhou and remaining stable in Shanghai. Meanwhile, transaction activity for both rebar and wire rod in southern China has mostly been at decent levels, while transaction activity in northern and eastern China has been on the slack side. On November 17, rebar futures contract (1505) offers closed at RMB 2,514/mt ($410/mt) at Shanghai Futures Exchange, down $7/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, steelmakers in northern China have resumed production after the conclusion of the Asia-Pacific Economic Cooperation (APEC) meeting in Beijing, with supplies increasing and exerting a negative impact on rebar and wire rod prices. Transaction activity in eastern China has been slack and prices there have indicated slight fluctuations as supply and demand have remained in equilibrium. Consumption of rebar and wire rod has been at good levels in southern China, resulting in slight upticks in prices in the region.
In northern China, the cold weather has affected consumption at construction sites and so some supplies have been directed from the north to the south of the country, with supply volumes increasing in eastern and southern China. As for the coming week, it is thought that supplies from the north may change the supply-demand equilibrium in eastern China, but may not affect the southern market due to the good consumption levels there, and so slight declines in prices may be seen in eastern China, while upticks will likely continue to be observed in southern China.