Weak sentiment in Chinese rebar and wire rod market

During the week ending September 14, in the Chinese domestic market rebar and wire rod prices have indicated a decreasing trend in southern China, though moving on a stable trend in other regions, while overall transaction activity in the domestic rebar and wire rod market has been at decent levels. On September 14, rebar futures contract (1601) offers closed at RMB 1,929/mt ($303/mt) at Shanghai Futures Exchange, up $1/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, demand for rebar and wire rod has been at decent levels and rebar and wire rod inventories has declined further which has indicated as an improvement in the overall transaction activity in China's domestic market. However, since steelmakers resumed production after the military parade, supply volume in the market has increased in the given week, putting negative pressure on the rebar and wire rod prices in the domestic market.

The traditional peak season of September has failed to meet the traders' expectations up to now, which has contributed to negative sentiment among players in the local Chinese long steel market. In addition, the slowing economic growth and the fluctuating stock market in China will likely to exert negative impact on China's rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will continue their stable trend amid weak sentiment 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