Chinese rebar and wire rod export prices edge down slightly

During the week ending March 27, Chinese export offer prices for rebar and wire rod have edged down slightly. At present, rebar offers given by Chinese suppliers are at $510-520mt FOB, while wire rod offers are at $535-545/mt FOB.

During the given week, though consumption of stocks has continued, demand has not been as good as expected, exerting a negative impact on wire rod and rebar prices. Meanwhile, rebar futures prices at Shanghai Futures Exchange (SHFE) softened in the latter part of the given week, also negatively affecting wire rod and rebar prices from China. Currently, Chinese steelmakers’ capacity utilization rates have increased as production restrictions have been relaxed, which will result in increased supply to the market and exert pressure on long steel prices. It is expected that rebar and wire rod prices from China will move on a fluctuating trend in the coming week.