Demand improves gradually in local Chinese rebar and wire rod market

During the week ending March 19, average prices of Chinese domestic rebar and wire rod have mostly decreased slightly, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On March 19, rebar futures contract (1805) offers closed at RMB 3,651/mt ($577/mt) at Shanghai Futures Exchange, down $10/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below. 

At the beginning of the given week, since rebar futures prices at Shanghai Futures Exchange (SHFE) decreased, rebar and wire rod prices were negatively affected and moved down. As of the middle of the given week, rebar futures prices moved upwards, exerting a positive impact on rebar and wire rod prices in the spot market. At the same time, production restrictions in northern China due to bad weather have also provided support for rebar and wire rod prices. Meanwhile, demand has gradually improved, resulting in lower inventory levels in the spot market. It is expected that rebar and wire rod prices in the Chinese domestic market will likely edge up in the coming week, though the trend of the futures market will need to be watched.

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 6.33