Activity at low levels in local Chinese rebar and wire rod market

During the week ending January 9, Chinese domestic rebar and wire rod prices have moved on a declining trend, while transaction activity in the domestic rebar and wire rod market has been at low levels. On January 9, rebar futures contract (1705) offers closed at RMB 3,048/mt ($442/mt) at Shanghai Futures Exchange, up $19/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, weak sentiment has prevailed in the market and most traders have been eager to sell before the Chinese New Year holiday, exerting negative pressure on rebar and wire rod prices in the spot market. Meanwhile, domestic steelmakers are seeking to reduce their inventories before the holiday, which is also exerting downward pressure on the market. China has initiated further investigations in relation to intermediate frequency furnaces in recent days, which will reduce supply to the market and provide a certain degree of support for rebar and wire rod prices in the market. It is thought that rebar and wire rod prices in the Chinese domestic market will likely just indicate some minor fluctuations in the coming week amid the traditional off-season for business.

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