During the week ending November 3, in the Chinese domestic market only rebar prices in Guangzhou have indicated a slight uptrend, rebar and wire rod prices in other regions of China have mostly followed a downward trend, with rebar prices in Shanghai indicating sideways movement. Meanwhile, transaction activity for both rebar and wire rod in China has been at decent levels. On November 3, rebar futures contract (1501) offers closed at RMB 2,614/mt ($427/mt) at Shanghai Futures Exchange, down $5/mt week on week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
During the given week, a further drop in temperatures has affected demand in northern China, negatively impacting rebar and wire rod prices in the region. Meanwhile, demand and supply in eastern and southern China have mostly been in equilibrium. Domestic steelmakers have increased their ex-works prices for rebar and wire rod, providing a certain degree of support for prices in the spot market. In the coming week, demand in China for rebar and wire rod is expected to remain at current levels, while the capacity utilization rates of steelmakers will likely remain at relatively high levels. It is expected that rebar and wire rod prices in the Chinese domestic market will indicate a slight downtrend in the coming week.
$1 = RMB 6.12