Demand slackens in local Chinese rebar and wire rod market due to G20 Summit

During the week ending September 5, Chinese domestic rebar prices have softened slightly in Guangzhou, though remaining stable in other regions, while domestic wire rod prices have mostly moved up slightly, though remaining stable in Guangzhou. Transaction activity in the domestic rebar and wire rod market is still at low levels. On September 5, rebar futures contract (1701) offers closed at RMB 2,436/mt ($365/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, due to environmental protection measures around the period of the G20 Summit in Hangzhou, steelmakers and traders have increased their offer prices for rebar and wire rod. Meanwhile, as construction sites have halted activities in the provinces of Jiangsu, Zhejiang and Anhui as well as in Shanghai against the backdrop of the summit, demand for long steel has been weak, resulting in a wait-and-see stance among traders. However, since September is traditionally the peak season for market activity, demand will likely improve. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week. 

 

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

 

 

All prices include 17 percent

 

$1 = RMB 6.68