Sharp increases in local Chinese rebar and wire rod market

During the week ending April 11, Chinese domestic rebar and wire rod prices have indicated a significant upward movement, while transaction activity in the domestic rebar and wire rod market has been at good levels. On April 11, rebar futures contract (1610) offers closed at RMB 2,293/mt ($355/mt) at Shanghai Futures Exchange, up $28/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, demand for rebar and wire rod has been at good levels in the Chinese domestic market, providing support for prices of rebar and wire rod. Meanwhile, rebar futures prices in China have indicated a rising trend, also boosting prices in the spot market. Bullish sentiment prevails in the domestic rebar and wire rod market, and speculative purchases in the market have increased. However, the purchasing activities of construction sites are still characterized by caution. Inventory levels of rebar and wire rod in the market have declined, reflecting lower capacity utilization rates of rebar and wire rod producers, and will likely provide support for rebar and wire rod prices in the coming period. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up further 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 6.47