Local Chinese rebar and wire rod market moves on rising trend

During the week ending June 27, Chinese domestic rebar and wire rod prices have mostly increased, though prices of wire rod in Beijing have softened, while transaction activity in the overall domestic rebar and wire rod market has remained at low levels. On June 27, rebar futures contract (1610) offers closed at RMB 2,268/mt ($342/mt) at Shanghai Futures Exchange, up $28/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

Domestic steelmaking giants Baosteel Group and Wuhan Iron and Steel Group have announced that they are planning a merger, which is also a signal that China will reduce its steelmaking production capacity, exerting a positive impact on the domestic finished steel industry. Rebar futures prices in China have risen significantly, causing steelmakers and traders to raise their rebar and wire rod offer prices. However, since China is in the traditional offseason for rebar and wire rod consumption, activity in the market has remained slack. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

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

$1 = RMB 6.65