Local Chinese rebar and wire rod prices continue to fall significantly

During the week ending November 1, average Chinese domestic rebar and wire rod prices have continued to indicate big declines amid decreasing rebar futures prices and the prevailing cautious sentiments among market players.

During the given period, the average rebar price has declined by RMB 210/mt, while the average wire rod price has also decreased, by RMB 220/mt. 

Over the past week, rebar and wire rod prices have continued to decline amid slack demand and slightly increasing supply. The government controls on coal have exerted a negative impact on rebar futures prices, with bearish sentiments prevailing among market players. The decreasing trend of steel prices has caused some steelmakers to cut their production capacity utilization rates, which may bolster rebar and wire rod prices in the near future due to anticipated production reductions. The People’s Bank of China has stated that it will ensure the steady supply of loans to the real estate industry during the remainder of the current year, which will likely bolster demand for steel. It is thought that rebar and wire rod prices in the Chinese domestic market will likely fluctuate within a limited range in the coming week.

On November 1, rebar futures contract (2201) offers closed at RMB 4,509/mt ($702.3/mt) at Shanghai Futures Exchange, down RMB 316/mt ($49.2/mt) or by 11.0 percent compared to October 25, reflecting market players’ bearish sentiments towards the future prospects for the rebar and wire rod 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 6.4192