During the week ending March 30, in the Chinese domestic market rebar prices have generally indicated significant decreases, though moving on a rising trend in Guangzhou. Meanwhile, in the Chinese domestic market wire rod prices have followed a declining trend in the Beijing market, while increasing in other regions, with transaction activity for both rebar and wire being better than in the previous week and now generally at decent levels. On March 30, rebar futures contract (1510) offers closed at RMB 2,451/mt ($395/mt) at Shanghai Futures Exchange, down $12/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, domestic rebar and wire rod producers' outputs have been restricted somewhat due to environmental protection measures, providing some support for local rebar and wire rod prices. At the same time, some steelmakers have been more reluctant to conclude deals, in anticipation of seeing higher prices later. However, following the price increases already recorded, some regions have witnessed corrections in prices as time is needed for the consumption of inventories. Furthermore, iron ore prices have softened, weakening the support for finished steel prices. It is thought that rebar and wire rod prices in the Chinese domestic market are unlikely to indicate any sharp increases in the coming week.
$1 = RMB 6.21