Local Chinese rebar and wire rod market moves down significantly

During the week ending March 26, average prices of Chinese domestic rebar and wire rod have decreased significantly, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On March 26, rebar futures contract (1805) offers closed at RMB 3,363/mt ($535/mt) at Shanghai Futures Exchange, down $42/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 inventories have been at relatively high levels, exerting negative pressure on domestic rebar and wire rod prices. Meanwhile, China’s Ministry of Commerce has announced it might impose tariffs on imports of US goods amid escalating trade tensions with US president Donald Trump. Accordingly, a mood of panic has swept the financial markets, while the ferrous metal futures market in China has indicated significant declines. However, with rebar and wire rod prices dropping significantly, some steelmakers have started to plan production cuts, which will likely provide some support for rebar and wire rod prices. At the same time, demand from downstream users has been improving gradually. It is expected that rebar and wire rod prices in the Chinese domestic market will likely move down further in the coming week, though by smaller margins.

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 6.28