Local Chinese rebar and wire rod prices begin to move up after decreases

During the week ending February 25, average prices of Chinese domestic rebar and wire rod edged down first but moved up later, though the average prices of rebar and wire rod are still lower compared to one week ago, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On February 25, rebar futures contract (1905) offers closed at RMB 3,682/mt ($550/mt) at Shanghai Futures Exchange, up $10/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, rebar futures prices at Shanghai Futures Exchange (SHFE) softened first, but moved up later after the Lantern Festival (February 19) amid increased optimism. Steelmakers have raised their ex-works prices for rebar in the given week, which will provide support for rebar and wire rod prices in the spot market. Although the ongoing rainy weather will exert a negative influence on demand for rebar and wire rod, demand is still likely to improve as construction sites are expected to step up their activity in the coming period. It is expected that rebar and wire rod prices in the Chinese domestic market will edge up 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 6.69