Local Chinese rebar and wire rod market sees sharp declines

During the week ending May 9, Chinese domestic rebar and wire rod prices have indicated sharp decreases, while transaction activity in the domestic rebar and wire rod market has slackened compared to the previous week. On May 9, rebar futures contract (1610) offers closed at RMB 2,175/mt ($334/mt) at Shanghai Futures Exchange, down $72/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, since speculative purchasing activity has cooled off in the ferrous metal markets, rebar and wire rod prices in the Chinese domestic market have indicated sharp declines. Meanwhile, rebar futures prices in China have indicated decreases, exerting strong pressures on the domestic rebar spot market. In addition, steelmakers and traders have been active in selling their rebar and wire rod products in order to bring in cash, dragging down rebar and wire rod offer prices. However, construction sites have been unwilling to make purchases as they are waiting for lower prices, resulting in slacker activity in the market. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move down further 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 6.51