Local Chinese rebar and wire rod prices fluctuate

During the week ending February 18, average prices of Chinese domestic rebar and wire rod first moved up significantly but later decreased, while transaction activity in the overall domestic rebar and wire rod market has been at low levels. On February 18, rebar futures contract (1905) offers closed at RMB 3,659/mt ($540/mt) at Shanghai Futures Exchange, down $23/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, iron ore futures prices at Dalian Commodity Exchange (DCE) moved up due to the Brazilian dam collapse, exerting a positive impact on market players’ confidence and also pushing up rebar and wire rod offer prices. However, transaction activities have remained at low levels as many market players have been slow to return to work after the holiday. Amid more realistic sentiment, rebar futures prices in China have decreased in the latter part of the given week, negatively affecting rebar and wire rod prices in the spot market. Demand is unlikely to see any improvement until after the Lantern Festival holiday (February 19). It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range 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 6.77