Negative pressures and poor sentiment in local Chinese rebar and wire rod market

Monday, 07 December 2015 15:09:27 (GMT+3)   |   Shanghai
       

During the week ending December 7, rebar and wire rod prices have continued to trend down in local markets in China. Transaction activity in the domestic rebar and wire rod market has been at low levels. On December 7, rebar futures contract (1605) offers closed at RMB 1,670/mt ($261/mt) at Shanghai Futures Exchange, down $7/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 in northern and northeastern China has been very quiet, resulting in the weakening of prices in these regions. Meanwhile, rebar and wire rod supplies have been directed from northern China to the south of the country, exerting pressure on prices in the southern market. In addition, the sentiment of panic prevailing in the domestic rebar and wire rod market has also contributed to the downward movement of prices. Iron ore prices have continued to edge down, negatively affecting finished steel prices. It is expected that rebar and wire rod prices in the Chinese domestic market will likely continue their downtrend in the coming week, though with smaller declines expected as compared to the decreases seen in the past week. 

Wire rod prices in local Chinese market 
 
Product name Spec. Category City  Steel plant/origin Price (RMB/mt) Price ($/mt) Weekly change (RMB/mt)
Wire Rod 8 mm dia. Q235 Shanghai Pingxiang 1,930 301 ↓50
Beijing Hebei Steel 1,770 276 ↓50
Guangzhou Shaoguan Steel 2,100 328 ↓20
Average - 1,934 302 ↓39
Wire Rod 6.5 mm dia. Q235 Shanghai Pingxiang 1,930 301 ↓50
Beijing Hebei Steel 1,770 276 ↓50
Guangzhou Shaoguan Steel 2,120 331 ↓20
Average - 1,940 303 ↓40
 
All prices include 17 percent VAT and all prices are ex-warehouse
 
Rebar prices in local Chinese market 
                        
Product name Spec. Category City  Steel plant/origin Price (RMB/mt) Price ($/mt) Weekly change (RMB/mt)
HRB400 Rebar 20 mm dia. HRB400 Shanghai Pingxiang 1,750 273 ↓30
Beijing Hebei Steel 1,670 261 ↓100
Guangzhou Shaoguan Steel 2,170 339 ↓30
Average 1,864 291 ↓53
 
All prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.41


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