Local Chinese rebar and wire rod prices bolstered by good demand

During the week ending November 2, average Chinese domestic rebar and wire rod prices have moved up amid firm demand and rising futures prices. Constructions works have been accelerating ahead of the winter and so rebar buying activities have been good so far.

Over the past week, the average rebar price has increased by RMB 63/mt, while the average wire rod price has risen by RMB 50/mt. Compared with the previous week, demand for rebar and wire rod has improved slightly, bolstering market sentiment as regards the future prospects for the market. Currently, blast furnace capacity utilization rates are still at high levels. It is expected that longs prices in the Chinese domestic market will likely edge up further in the coming week.

On November 2, rebar futures contract (2101) offers closed at RMB 3,719/mt ($555/mt) at Shanghai Futures Exchange, up RMB 106/mt ($16/mt) or by 2.9 percent since October 26 and up by 0.87 percent compared to the previous trading day, signaling market players’ bullish sentiments towards the future prospects for the market.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Rebar prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.705