Colder weather continues to impact local Chinese rebar and wire rod market

During the week ending November 30, rebar and wire rod prices have mostly continued to trend down in local markets in China, with rebar prices in southern China moving sideways. Transaction activity in the domestic rebar and wire rod market has generally been slacker than in the previous week, though remaining at decent levels. On November 30, rebar futures contract (1601) offers closed at RMB 1,626/mt ($254/mt) at Shanghai Futures Exchange, down $6/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, further declines in temperatures have negatively affected rebar and wire rod prices amid a slackening of demand. Meanwhile, due to cold weather in northern China, rebar and wire rod supplies from the north have been directed to southern China, exerting a negative impact on local prices in the south due to the increased supply. Meanwhile, rebar and wire rod producers have gradually reduced their production activities, though this will not change the oversupply situation in the domestic market radically. It is expected that rebar and wire rod prices in the Chinese market will continue their downtrend in the coming week.

Wire rod prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse.
 
$1 = RMB 6.40