Transaction activity improves in local Chinese rebar and wire rod market

During the week ending August 17, in the Chinese domestic market rebar and wire rod prices have mostly indicated an increasing trend in RMB prices, though with rebar prices remaining stable in Beijing, and with 8 mm wire rod prices remaining unchanged in Beijing and Guangzhou, and slight declines seen in 6.5 mm wire rod prices in Beijing, while overall transaction activity in the domestic rebar and wire rod market has been a bit better than in the previous week, though remaining at low levels. On August 17, rebar futures contract (1601) offers closed at RMB 2,059/mt ($322/mt) at Shanghai Futures Exchange, down $8/mt week on week mainly due to changes in Chinese currency exchange rate. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

During the given week, since the weather in China has not been as hot as in the previous period, construction activity has improved in China, resulting in increased rebar and wire rod consumption. Meanwhile, pressure from increased supply in northern China has exerted a negative impact on rebar and wire rod prices in the region. Consumption of rebar and wire rod will likely continue to improve in the second half of August, positively affecting rebar and wire rod prices. However, production activity will recover in line with the rebound of prices and so supply volumes will increase. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move on a slight downtrend in the coming week.

Wire rod prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse

Rebar prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.39