Local Chinese rebar and wire rod market sees good demand

During the week ending April 18, Chinese domestic rebar and wire rod prices have continued their upward trend, while transaction activity in the domestic rebar and wire rod market has been at decent levels. On April 18, rebar futures contract (1610) offers closed at RMB 2,391/mt ($369/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, steelmakers and traders in China have continued to raise their rebar and wire rod offer prices. Meanwhile, consumption from construction sites has been at good levels, boosting transaction activity for rebar and wire rod. In addition, inventory levels of rebar have declined, providing support for rebar prices. However, given the previous rises recorded, domestic prices of rebar and wire rod are unlikely to continue their sharp uptrend in the coming period. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move up further in the week ahead, though with limited increase 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

$1 = RMB 6.48