Demand continues to slacken in local Chinese rebar and wire rod market

During the past week ending July 31, Chinese domestic rebar and wire rod prices have moved upwards, while transaction activity in the domestic rebar and wire rod market has been at low levels. On July 31, rebar futures contract (1710) offers closed at RMB 3,731/mt ($554/mt) at Shanghai Futures Exchange, up $44/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, rebar and wire rod prices in southern China have indicated larger rises, as compared to the slight increases observed in northern China. The hot weather conditions have continued to limit domestic demand for rebar and wire rod and is expected to contribute to a further slackening of demand in the week ahead. Meanwhile, rebar futures prices have risen significantly, exerting a positive impact on the rebar and wire rod spot market. It is thought that rebar and wire rod prices in the Chinese domestic market will likely decline slightly in the coming week due to the demand situation.

Wire rod prices in local Chinese market

 All prices include 17 percent VAT and all prices are ex-warehouse

Rebar prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse

$1 = RMB 6.73