Local Chinese rebar and wire rod prices decline

As of January 29, Chinese domestic rebar and wire rod prices have declined on week-on-week basis, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On January 29, rebar futures contract (1805) offers closed at RMB 3,945/mt ($623/mt) at Shanghai Futures Exchange, up RMB 11/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

At the beginning of the given week, due to the increases seen in semi-finished steel prices in China during the previous weekend, domestic rebar and wire rod prices also moved upwards. However, demand has slackened due to the approach of the Chinese New Year holiday (February 15-21) and also due to the cold weather conditions in China, causing rebar and wire rod prices to decline. Currently, domestic steelmakers’ rebar and wire rod inventories are at relatively low levels, which means supplies to the spot market will be negatively impacted. Although demand will remain on the slack side, traders have been waiting for a good opportunity to conclude purchases and their inventory replenishments will provide support for prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up slightly 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 VAT and all prices are ex-warehouse

$1 = RMB 6.33