Demand still poor in local Chinese rebar and wire rod market

During the week ending July 6, in the Chinese domestic market rebar and wire rod prices have seen larger decreases compared to the previous week due to quieter purchasing activity from construction sites, while overall transaction activity in the domestic rebar and wire rod market has remained at low levels. On July 6, rebar futures contract (1510) offers closed at RMB 2,027/mt ($327/mt) at Shanghai Futures Exchange, down $25/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, purchases of rebar and wire rod from construction sites have shrunk significantly, exerting a negative impact on confidence among traders and steelmakers, and resulting in relatively sharp decreases in local rebar and wire rod prices. Meanwhile, iron ore prices have also indicated larger decreases, weakening support for finished steel prices. Slack demand will likely continue to be observed in the market. It is expected that rebar and wire rod prices will soften further in the coming week.

Wire rod prices in local Chinese market

Rebar prices in local Chinese market

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

$1 = RMB 6.21