Demand slackens in local Chinese rebar and wire rod market

During the week ending July 10, Chinese domestic rebar and wire rod prices have indicated diverse trends, increasing in Beijing though indicating declines in the Guangzhou market, while transaction activity in the domestic rebar and wire rod market has been at low-to-medium levels. On July 10, rebar futures contract (1710) offers closed at RMB 3,442($506/mt) at Shanghai Futures Exchange, up $5/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, as ferrous metals futures prices in China increased, rebar and wire rod prices in the domestic market received support and moved up. However, in the latter part of the week, demand from downstream users slackened and sales of rebar and wire rod in the spot market became more sluggish, having a negative influence on the price trend. The weather in China has become hotter, which will exert a negative impact on demand for rebar and wire rod in the coming period. Although rebar futures prices still continue their rising trend, they have lost some of their upward momentum. It is thought that rebar and wire rod prices in China will likely move sideways in the week ahead, or may also edge down in some regions of the country.

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 6.80