Weak demand in local Chinese rebar and wire rod market amid rainy weather

During the week ending June 15, in the Chinese domestic market rebar and wire rod prices have continued their decreasing trend due to slack demand from construction sites, while overall transaction activity in the domestic rebar and wire rod market has been at low levels. On June 15, rebar futures contract (1510) offers closed at RMB 2,281/mt ($367/mt) at Shanghai Futures Exchange, down $9/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

During the given week, rainy weather has contributed to slack demand for rebar and wire rod from construction sites in China. Meanwhile, most steelmakers have cut their ex-works prices for rebar and wire rod by RMB 20-50/mt ($3-8/mt). As for the coming period, increased volumes of iron ore supplies will arrive at Chinese ports, and this will likely negatively impact prices of iron ore and, in turn, prices of finished steel. It is expected that rebar and wire rod prices in the Chinese domestic market will continue their downward movement in the coming week as rainy weather conditions will continue to prevail and impact demand for rebar and wire rod.

Wire rod prices in local Chinese market

Rebar prices in local Chinese market

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

$1 = RMB 6.21