Financial market impacts local Chinese rebar and wire rod prices

During the week ending May 6, average prices of Chinese domestic rebar and wire rod have fluctuated slightly, while transaction activity in the overall domestic rebar and wire rod market has been at medium levels. On May 6, rebar futures contract (1910) offers closed at RMB 3,756/mt ($556/mt) at Shanghai Futures Exchange, down $5/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Ahead of the Labor Day holiday (May 1-4), demand from downstream users had improved, pushing up local Chinese rebar and wire rod prices. However, due to the sharp decline seen in the stock markets and futures markets in China on May 6, rebar and wire rod prices in the domestic spot market have softened. Inventory levels increased slightly during the holiday, but will likely decrease in the near future. Due to the uncertainty in the financial markets, traders and rebar and wire rod producers now prefer to sell and lower their inventory in order to avoid potential risks. It is thought that rebar and wire rod prices in the Chinese domestic market will likely soften 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 6.75