During the week ending January 12, in the Chinese domestic market rebar and wire rod prices have indicated a declining trend, while transaction activity for both rebar and wire rod in the local Chinese market has been sluggish. On January 12, rebar futures contract (1505) offers closed at RMB 2,502/mt ($404/mt) at Shanghai Futures Exchange, down $13/mt week on 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, both steelmakers and traders in China have reduced their sales prices for rebar and wire rod, though transaction activity has continued to slacken. The cancellation of the export tax rebate on boron-added steel products has increased the supply pressure in the local rebar and wire rod market, contributing to the declining trend of prices, while decreases in futures prices of rebar and iron ore have also had a negative impact on the market. The oversupply situation in the local rebar and wire rod market has continued amid the ongoing cold winter weather conditions. It is expected that rebar and wire rod prices in the Chinese domestic market will maintain their downward trend in the coming week.