Significant increases in local Chinese rebar and wire rod market

Monday, 23 March 2015 17:40:13 (GMT+3)   |   Shanghai
During the week ending March 23, in the Chinese domestic market rebar and wire prices have generally indicated a sharp rising trend, while transaction activity has not seen any further significant improvement. On March 23, rebar futures contract (1510) offers closed at RMB 2,548/mt ($410/mt) at Shanghai Futures Exchange, up $4/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, since demand for rebar and wire rod had improved in line with the warmer weather, traders have been offering higher prices, with a sharper rise seen in northern and eastern China, and smaller increases observed in southern China. However, traders have been somewhat reluctant to sell as prices are clearly on an upward trend, and so there has not been any further significant increase in transaction activity. Some steelmakers have increased their ex-works prices for rebar and wire rod, reflecting their bullish sentiment on the future prospects for the market. Amid improved confidence, Chinese traders and steelmakers might continue to increase their local offer prices for rebar and wire rod, though it remains to be seen how long the rising price trend will last as more time is needed for purchase volumes from construction sites to increase. It is expected that rebar and wire rod prices in the Chinese domestic market will indicate a slight uptrend in the coming week.


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