During the week ending November 24, in the Chinese domestic market rebar prices in Beijing and Shanghai have continued to indicate a downtrend, while rebar prices in Guangzhou have remained on a stable trend. In addition, in the given week, domestic wire rod prices in China have seen an overall declining trend. Meanwhile, transaction activity for both rebar and wire rod has been on the slack side. On November 24, rebar futures contract (1505) offers closed at RMB 2,437/mt ($398/mt) at Shanghai Futures Exchange, down $13/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, against the backdrop of the continuing sluggishness of demand, the oversupply situation in northern China has exerted a negative impact on local rebar and wire rod prices in the region. Due to the softness of rebar and wire rod prices in northern China, steelmakers in eastern China have lowered their ex-works prices for rebar and wire rod, negatively influencing market prices in the region. Meanwhile, the flow of supplies from northern China to southern China has affected the supply-demand situation in the south. Accordingly, rebar prices in Guangzhou stopped their rising trend and started to move sideways, while wire rod prices in Guangzhou indicated slight decreases. In the meantime, iron ore prices have continued to decline during the given week, weakening support for rebar and wire rod prices in China. It is expected that rebar and wire rod prices in the Chinese domestic market will continue to move down amid a lack of confidence in the prospects for the finished steel market in China.
$1 = RMB 6.13