Local Chinese rebar and wire rod market mostly moves on soft trend

During the week ending May 14, average prices of domestic rebar and wire rod in China have mostly decreased, while transaction activity in the overall domestic rebar and wire rod market has been at medium levels. On May 14, rebar futures contract (1810) offers closed at RMB 3,667/mt ($578/mt) at Shanghai Futures Exchange, up $3/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 have indicated bigger decreases in southern China due to poor demand, while prices in eastern China have decreased at a slower rate due to relatively low inventory levels. In the latter part of the given week, major steelmakers, for instance, Jiangsu Province-based Shagang and Liaoning Province-based Ansteel, have increased their ex-works prices for rebar and wire rod by RMB 70-200/mt ($11-31.5/mt), thereby providing support for rebar and wire rod prices in the spot market. Traders have been unwilling to sell at lower prices following the price hikes announced by steelmakers. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week.

Wire rod prices in local Chinese market

All prices include 16 percent VAT and all prices are ex-warehouse

Rebar prices in local Chinese market

All prices include 16 percent VAT and all prices are ex-warehouse

$1 = RMB 6.34