Local Chinese rebar prices indicate downward trend

During the week ending September 18, Chinese domestic rebar prices have moved on an overall downtrend, while wire rod prices have indicated diverse trends. Transaction activity in the domestic rebar and wire rod market has been at low-to-medium levels. On September 18, rebar futures contract (1801) offers closed at RMB 3,801/mt ($579/mt) at Shanghai Futures Exchange, down $21/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, rebar futures prices at Shanghai Futures Exchange (SHFE) have declined, exerting a negative impact on rebar and wire rod prices in the spot market. Meanwhile, demand has not improved significantly, resulting in bearish sentiment in the market. However, Hebei Iron and Steel Group has issued its sales prices for rebar and wire rod for mid-September: its subsidiaries Tangsteel and Xuanhua Steel have maintained their rebar and wire rod prices stable, while another subsidiary Hansteel has raised its rebar and wire rod prices by RMB 50/mt ($8/mt), thereby providing some support for rebar and wire rod prices in the spot market. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge down or 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 VAT and all prices are ex-warehouse

$1 = RMB 6.57