Oversupply impacts local Chinese rebar and wire rod market

During the week ending October 19, average rebar and wire rod prices have seen a decreasing trend in most local markets in China, though rebar and wire prices have followed a stable trend in southern China, while transaction activity in the overall domestic rebar and wire rod market has been at decent levels. On October 19, rebar futures contract (1601) offers closed at RMB 1,805/mt ($285/mt) at Shanghai Futures Exchange, down $8/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, demand for rebar and wire rod has been at decent levels, while downward pressures from the domestic economic situation and from oversupply in the rebar and wire rod market have negatively impacted the market. The current period is the traditional peak season for construction projects and the real estate market, but demand in the rebar and wire rod market has not indicated any significant improvement. In addition, rebar futures prices, which are considered to reflect market participants’ sentiment on the future prospects for the market, have moved on a declining trend over the past week. It is expected that rebar and wire rod prices in the Chinese domestic market will continue their downtrend in the coming week. 

 

All prices include 17 percent VAT and all prices are ex-warehouse

 

 

 

All prices include 17 percent VAT and all prices are ex-warehouse.

 

$1 = RMB 6.36