Rainy weather negatively impacts local Chinese rebar and wire rod market

During the week ending May 30, Chinese domestic rebar and wire rod prices have mostly decreased, though indicating rises for rebar in Beijing and for wire rod in Shanghai, with wire rod prices in Beijing remaining unchanged, while transaction activity in the domestic rebar and wire rod market has been at low levels. On May 30, rebar futures contract (1610) offers closed at RMB 1,990/mt ($302/mt) at Shanghai Futures Exchange, up $4/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, most regions in China, especially the eastern and southern regions have seen rainy weather, which has negatively affected demand for rebar and wire rod, dragging down rebar prices in Guangzhou and Shanghai. However, short supply of wire rod in Shanghai has provided a certain degree of support for wire rod prices in the local Shanghai market. Since most regions of China will continue to see rainy weather in the coming week, it is thought that rebar and wire rod prices in the Chinese domestic market will likely indicate a slight downtrend in the week ahead.

Wire rod prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse
 
Rebar prices in local Chinese market

All prices include 17 percent

$1 = RMB 6.58