Local Chinese rebar and wire rod market boosted by output cut plans

During the past week ending August 7, Chinese domestic rebar and wire rod prices have continued their uptrend, while transaction activity in the domestic rebar and wire rod market has improved from the previous week’s low levels and is now at low-to-medium levels. On August 7, rebar futures contract (1710) offers closed at RMB 4,079/mt ($607/mt) at Shanghai Futures Exchange, up $53/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 and wire rod prices in the Chinese domestic market have indicated significant rises following the blast furnace output cuts announced by the authorities in Hebei Province for the coming winter season (November 2017-March 2018). Moreover, higher rebar futures prices and shortages of rebar and wire rod supply in some regions have also provided additional support for the upward movement of prices in the spot market. As for the coming period, environmental inspections are expected to negatively impact rebar and wire rod output. It is thought that rebar and wire rod prices in the Chinese domestic market will continue to move upwards in the week ahead.

Wire rod prices in local Chinese market

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

Rebar prices in local Chinese market

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

$1 = RMB 6.72