Activity continues to improve in local Chinese rebar and wire rod market

During the week ending March 6, Chinese domestic rebar and wire rod prices have moved up in Guangzhou, while remaining stable in Shanghai and Beijing. Transaction activity in the domestic rebar and wire rod market has been better than in the previous week and is now at decent levels. On March 6, rebar futures contract (1705) offers closed at RMB 3,467/mt ($502/mt) at Shanghai Futures Exchange, down $21/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, construction sites have stepped up their purchases and real consumption at construction sites in China has improved, resulting in improved transaction activity and providing support for domestic rebar and wire rod prices. Meanwhile, overall inventory levels of rebar and wire rod have decreased gradually, also exerting a positive impact on rebar and wire rod prices in the spot market. However, the rising prices have also spurred steelmakers to increase their capacity utilization rates and this is expected to eventually influence rebar and wire rod prices negatively from the supply side. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move sideways 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

All prices include 17 percent VAT and all prices are ex-warehouse
 
$1 = RMB 6.89