Chinese rebar and wire rod export prices move on stable trend

During the week ending January 9, Chinese export offer prices for rebar and wire rod have moved sideways. At present, rebar offers given by Chinese suppliers are at $470-480/mt FOB, while wire rod offers are at $480-490/mt FOB.

Following the New Year holiday, inventories of rebar and wire rod have risen slightly and are now at relatively high levels, exerting a negative impact on rebar and wire rod prices in the Chinese domestic market. However, rebar futures prices at Shanghai Futures Exchange (SHFE) have increased, positively affecting rebar and wire rod prices in the spot market. Meanwhile, China’s National Development and Reform Commission (NDRC) has approved several railway projects over the past month, with such infrastructure investments expected to provide support for the rebar and wire rod market. Although big domestic steelmakers have kept their export prices for rebar and wire rod stable, some smaller producers have been tending to give higher offer prices. It is thought that rebar and wire rod export prices from China will likely edge up slightly in the coming week.