Slack activity in local Chinese rebar and wire rod market

Monday, 19 June 2017 17:25:45 (GMT+3)   |   Shanghai
       

During the week ending June 19, Chinese domestic rebar and wire rod prices first decreased and then moved back up, with average prices now slightly higher compared to one week ago. Transaction activity in the domestic rebar and wire rod market has been at low levels. On June 19, rebar futures contract (1710) offers closed at RMB 3,140/mt ($456/mt) at Shanghai Futures Exchange, up $16/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below. 
During the early part of the given week, rainy weather in China resulted in slacker demand for rebar and wire rod, negatively impacting prices. However, rebar futures prices rebounded as of the middle of the week, causing downstream users to increase their purchases, providing support for rebar prices in the spot market. While sentiment in the market has improved given the rebound of futures prices, transaction activity would be expected to weaken if rebar and wire rod spot prices increase. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week. 

Wire rod prices in local Chinese market 
 
Product name Spec. Category City  Steel plant/origin Price (RMB/mt) Price ($/mt) Weekly change (RMB/mt)
Wire Rod 8 mm dia. HPB300 Shanghai Shente 3,690 541 0
Beijing Hebei Steel 3,950 579 0
Guangzhou Shaoguan Steel 3,880 569 ↑10
Average - 3,840 563 ↑3
Wire Rod 6.5 mm dia. HPB300 Shanghai Shente 3,690 541 0
Beijing Hebei Steel 3,950 579 0
Guangzhou Shaoguan Steel 3,910 573 ↑10
Average - 3,850 565 ↑3
 

All prices include 17 percent VAT and all prices are ex-warehouse
 
Rebar prices in local Chinese market 
 
Product name Spec. Category City  Steel plant/origin Price (RMB/mt) Price ($/mt) Weekly change (RMB/mt)
HRB400 Rebar 20 mm dia. HRB400 Shanghai Shente 3,600 528 ↓10
Beijing Hebei Steel 3,580 525 ↑40
Guangzhou Shaoguan Steel 3,990 585 ↑30
Average 3,723 546 ↑20
 

All prices include 17 percent VAT and all prices are ex-warehouse
 
$1 = RMB 6.82


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