Local Chinese rebar and wire rod market mostly moves on upward trend

During the week ending June 25, average prices of Chinese domestic rebar and wire rod have mostly increased, though with slight decreases in rebar prices in Guangzhou and Shanghai, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On June 25, rebar futures contract (1810) offers closed at RMB 3,723/mt ($569/mt) at Shanghai Futures Exchange, down $25/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, ferrous metals futures prices have seen decreasing trends, exerting a negative impact on rebar and wire rod prices. Market participants have mostly hold a cautious attitude towards prospect for the future market. Meanwhile, the inventory level at rebar and wire rod market has still been at comparatively low level, which will provide certain support to rebar and wire rod prices. At the same time, steelmakers have still raised their ex-works prices for rebar and wire rod, which will also bolster rebar and wire rod prices in spot market. However, the hot weather amid rainy weather will negatively affect the demand for rebar and wire rod. It is expected that rebar and wire rod prices in the Chinese domestic market will likely move sideways or decrease slightly 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 6.54