During the week ending December 8, in the Chinese domestic market only
rebar prices in Beijing have moved on a stable trend, while
rebar prices in Guangzhou and Shanghai have indicated downward movement. In addition, in the given week, domestic
wire rod prices in
China have seen an overall downtrend. Meanwhile, transaction activity for both
rebar and
wire rod in the Chinese domestic has been at low levels. On December 8,
rebar futures contract (1505) offers closed at RMB 2,542/mt ($415/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, the sluggish demand situation in the Chinese domestic
rebar and
wire rod market has negative any positive influence from the recent announcement of cuts in benchmark interest rates in
China. From the north to the south of the country, more and more construction sites have suspended construction activities due to colder weather, negatively impacting
rebar and
wire rod prices in the Chinese domestic market. Meanwhile, steelmakers in eastern
China have cut their ex-works prices for
rebar and
wire rod due to the drop in temperatures. Furthermore, as the end of the year approaches, both steelmakers and traders are experiencing tight liquidity. It is expected that
rebar and
wire rod prices in the Chinese domestic market will continue their downtrend up to the Spring Festival holiday (Feb. 19-15) due to shrinking demand.