During the week ending September 23, the Chinese domestic rebar and wire rod market has continued to slip down, though there has been an improvement in market activity. On September 23, rebar futures contract (1401) offers closed at RMB 3,655/mt ($597/mt) at Shanghai Futures Exchange, almost unchanged compared to the previous week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
Although rebar and wire rod tonnages ordered for construction projects in China have increased during the past week, traders have continued to offer discounts in order to speed up the restocking process before the National Day holiday (October 1-7). In addition, the lower ex-mill prices announced by major domestic steel producer Shagang Steel Group has had an adverse impact on the domestic rebar and wire rod market.
Furthermore, construction steel inventory in the domestic market has been increasing recently, and this has increased concerns in the market. Overall, it is thought that Chinese domestic rebar and wire rod prices will probably move on a soft trend in the coming week.
$1 = RMB 6.12