During the week ending September 1, rebar and wire rod prices in the Chinese domestic market have continued to indicate downward movement, while overall transaction activity for both rebar and wire rod has remained at low levels. On September 1, rebar futures contract (1501) offers closed at RMB 2,915/mt ($473/mt) at Shanghai Futures Exchange, down $10/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, a number of domestic steelmakers have lowered their ex-works prices for rebar and wire rod, especially in eastern China. For instance, Shagang has cut its rebar and wire rod prices by RMB 100/mt ($16/mt) and RMB 110/mt ($18/mt) respectively for early September shipment, exerting a negative impact on rebar and wire rod prices in the local spot market. Traders state that supply volumes from steelmakers are at high levels, contributing to the oversupply situation in the market. Meanwhile, raw material prices have indicated significant decreases, while the steel futures market in China is characterized by downward movement and bearish sentiment. It is thought that rebar and wire rod prices in the Chinese domestic market will remain on a soft trend, though the declining movement of prices will likely slow down as construction activity is expected to indicate some recovery in September.