During the week ending August 11, rebar and wire rod prices in the Chinese domestic market have mainly been stable, though minor declines have been seen in the Shanghai market, while overall transaction activity for both rebar and wire rod has been at poor levels. On August 11, rebar futures contract (1501) offers closed at RMB 3,062/mt ($498/mt) at Shanghai Futures Exchange, down $8/mt compared to the previous week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
Since rebar futures prices at Shanghai Futures Exchange have softened in the given week, some rebar prices in the spot market have indicated small decreases. Meanwhile, Shagang, the main long steel producer in eastern China, has reduced its ex-works prices for rebar and wire rod for mid-August shipment, exerting a negative impact on rebar and wire rod prices in the Shanghai market. Prices of rebar and wire rod in other regions of China have mainly remained on a sideways trend. The relative easing of the hot weather conditions in China has resulted in an improvement in expectations for the domestic rebar and wire rod market in the coming period. However, steelmakers have increased their capacity utilization, affecting the supply situation, with overall inventory in the market increasing in the given week. It is expected that domestic rebar and wire rod prices will move sideways in the coming week as the relaxation of real estate purchase restrictions in China has not yet triggered improved demand for rebar and wire rod.