Rainy weather still impacts local Chinese rebar and wire rod market

During the week ending June 29, in the Chinese domestic market rebar and wire rod prices have continued their decreasing trend due to slack demand from construction sites, while overall transaction activity in the domestic rebar and wire rod market has been at low levels. On June 29, rebar futures contract (1510) offers closed at RMB 2,181/mt ($351/mt) at Shanghai Futures Exchange, down $15/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, ongoing heavy rain in China has caused significant delays in the construction of infrastructure and real estate, thereby slowing down real consumption of rebar and wire rod and putting traders under pressure to lower their sales prices. Meanwhile, steelmakers have also lowered their ex-works prices for rebar and wire rod. With the rainy weather continuing and with floods impacting some regions in China, demand for long steel is unlikely to improve. It is thought that rebar and wire rod prices in the Chinese domestic market will likely continue their downtrend 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