Prices rebound in local Chinese rebar and wire rod market

During the week ending July 20, in the Chinese domestic market rebar and wire rod prices have indicated a slight rebound amid increased purchasing activity from construction sites, while overall transaction activity in the domestic rebar and wire rod markets has been at low levels. On July 20, rebar futures contract (1510) offers closed at RMB 2,073/mt ($334/mt) at Shanghai Futures Exchange, up $10/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, since the typhoon has passed and with the rainy season finally ending, the real consumption of rebar and wire rod has improved. Steelmakers and some of the traders have preferred to hold their offer prices stable, with part of traders increasing their offer prices. Meanwhile, rebar futures prices have also rebounded, providing certain support to rebar and wire rod prices in the spot market.

Recently, finished steel prices have declined larger than iron ore prices, forcing part of steelmakers to idle their rebar and wire rod production lines, easing the supply pressure to some extent. It is expected that rebar and wire rod prices in the Chinese domestic market will continue their upward trend in the coming week.

Wire rod prices in local Chinese market

Rebar prices in local Chinese market

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

$1 = RMB 6.21