During the week ending April 13, in the Chinese domestic market rebar and wire rod prices have generally indicated downward movement, though rebar prices have moved on a stable trend in Guangzhou, while overall transaction activity in the domestic market has been at decent levels. On April 13, rebar futures contract (1510) offers closed at RMB 2,329/mt ($374/mt) at Shanghai Futures Exchange, down $20/mt week on week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
During the given week, with China announcing on April 8 its decision to cut the resource tax on iron ore from 80 percent to 40 percent, effective from May 1 this year, Chinese domestic miners have gained more room to sustain the impact of declines in iron ore prices, resulting in further decreases in iron ore prices. Due to the further weakening of support from raw material costs, rebar and wire rod prices in China have indicated further declines in the past week. Meanwhile, rebar futures prices have decreased sharply, exerting a negative impact on rebar prices in the spot market. Currently, construction activity in China is at decent levels, with purchasing activities for rebar and wire rod also performing reasonably well.