Local Chinese rebar and wire rod market moves on rising trend

During the week ending May 7, average prices of Chinese domestic rebar have increased, while transaction activity in the overall domestic rebar and wire rod market has been at medium levels. On May 7, rebar futures contract (1810) offers closed at RMB 3,657/mt ($575/mt) at Shanghai Futures Exchange, up $14/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, traders have been seeking to replenish stocks after the Labor Day Holiday (April 28-May 1), bolstering rebar and wire rod prices in the spot market. Meanwhile, rebar futures prices have increased, exerting a positive impact on rebar and wire rod prices. Following the quick price rises, some traders have started to focus on sales, resulting in a slowdown in the upward trend of prices and even some downward corrections in some regions at the end of the week. Inventory levels on the steelmakers’ side and in the spot market have decreased further, providing support for the rebar and wire rod market. It is thought that rebar and wire rod prices in the Chinese domestic market will likely 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 6.36