Downtrend in local Chinese rebar and wire rod prices

During the week ending June 3, average prices of Chinese domestic rebar and wire rod have moved down, while transaction activity in the overall domestic rebar and wire rod market has been at low levels. On June 3, rebar futures contract (1910) offers closed at RMB 3,707/mt ($537/mt) at Shanghai Futures Exchange, down $21/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, rebar futures prices have edged down, exerting a negative impact on rebar and wire rod prices in spot market. Market participants have been pessimistic towards prospect for the future rebar and wire rod market due to slack demand. However, though seeing slight decreases, steelmakers’ capacity utilization rate has still been at comparatively high level, also negatively affecting the rebar and wire rod market. The inventory level has seen decreases, now at comparatively low levels. Since the demand slackened, the inventory level will likely increase in the near future. It is expected that rebar and wire rod prices will likely edge down, though with a slower pace in the coming week.

Wire rod prices in local Chinese market

All prices include 13 percent VAT and all prices are ex-warehouse.
 

Rebar prices in local Chinese market

All prices include 13 percent VAT and all prices are ex-warehouse

$1 = RMB 6.91