During the week ending August 18, rebar and wire rod prices in the Chinese domestic market have mostly indicated downward movement, while overall transaction activity for both rebar and wire rod has remained at low levels. On August 18, rebar futures contract (1501) offers closed at RMB 3,010/mt ($489/mt) at Shanghai Futures Exchange, down $6/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, persistent rainy weather in China has exerted a negative impact on demand for wire rod and rebar and so traders started to lower their prices in order to stimulate transaction activity. Rebar futures prices at Shanghai Futures Exchange have continued to move down, resulting in pessimistic sentiment in the spot market. Traders have also stated that volumes of new materials arriving in the market have been on the high side, increasing supply pressures and contributing to the declines in rebar and wire prices. It is thought that rebar and wire rod prices in the Chinese domestic market are unlikely to indicate any recovery in the coming week amid relatively high domestic production volumes.