Local Chinese rebar and wire rod prices decrease

During the week ending June 17, average prices of Chinese domestic rebar and wire rod have moved down, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On June 17, rebar futures contract (1910) offers closed at RMB 3,704/mt ($535/mt) at Shanghai Futures Exchange, down $1/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, the profitability of steelmakers in China has shrunk due to the rises seen in iron ore prices, though they still retain a reasonable profit margin and so their rebar and wire rod outputs remain at elevated levels. However, demand from downstream users and traders has been slack, resulting in the increases seen in the inventory levels of rebar and wire rod. Market participants are mostly downbeat on the prospects for the future trend of the market. It is expected that rebar and wire rod prices in the Chinese domestic market will move down slightly in the coming week.

Wire rod prices in local Chinese market

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

Rebar prices in local Chinese market

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

$1 = RMB 6.93