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

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. 

 

 

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

 

                        

 

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

 

$1 = RMB 6.41