Demand slows down in local Chinese rebar and wire rod market
Monday, 16 June 2014 14:37:09 (GMT+3)
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Istanbul
During the week ending June 16, rebar and wire rod prices in the Chinese domestic market have continued to see downward movement, while transaction activity has been slack. On June 16, rebar futures contract (1410) offers closed at RMB 3,001/mt ($490/mt) at Shanghai Futures Exchange, down by $11/mt compared to the previous week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section. Purchasing activities from construction sites have slowed down due to the hot weather in China, dragging down rebar prices in the Chinese domestic market. Currently, traders are maintaining a wait-and-see stance towards the market, though their inventory levels are not at high levels. Traders are not inclined to purchase materials from steelmakers, thereby reinforcing the weak sentiment in the rebar and wire rod market. Meanwhile, some steelmakers have reduced their ex-works prices for rebar and wire rod. However, market insiders think that there is limited room for further downward movement of rebar and wire rod prices as they are already at quite low levels. It is expected that rebar and wire rod prices in China will fluctuate within a narrow range in the coming week amid the ongoing slackness of demand during the hot summer weather.
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