During the week ending September 22, rebar and wire rod prices in the Chinese domestic market have indicated significant declines in northern China, while overall transaction activity for both rebar and wire rod has been slack. On September 22, rebar futures contract (1501) offers closed at RMB 2,619/mt ($427/mt) at Shanghai Futures Exchange, down $34/mt compared to the previous 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, rebar and wire rod prices have indicated a variety of trends in eastern and southern China. The previous price cut of RMB 200/mt ($32/mt) by Hebei Iron and Steel has resulted in significant drops in rebar and wire rod prices in northern China. Although the purchasing activities of downstream industries have increased to some extent, traders are still slow to book products from steelmakers. As for the coming week, eastern China will face stormy and rainy weather, which will exert a negative impact on rebar and wire rod prices. Meanwhile, low-priced rebar and wire rod from northern China will be directed to southern China, placing pressure on local rebar and wire rod prices in the south. Since iron ore futures prices have accelerated their downward movement, it is expected that rebar and wire rod prices in the Chinese domestic market will continue their downtrend in the coming week.