Local Chinese rebar and wire rod prices follow a downward trend

As of July 8, average prices of Chinese domestic rebar and wire rod have generally moved down 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 July 8, rebar futures contract (1910) offers closed at RMB 3,992/mt ($580/mt) at Shanghai Futures Exchange, down $20/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, semi-finished steel and finished steel prices indicated sharp rises, while demand from downstream users was slack. In the latter part of the week, rebar futures prices moved down, exerting a negative impact on rebar and wire rod prices in the spot market. Despite the production cuts implemented in Tangshan, supply has not dropped as much as expected. Meanwhile, inventories of rebar and wire rod have risen slightly, weakening the support for rebar and wire rod prices. It is expected that rebar and wire rod prices in the Chinese domestic market will moved down further 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 6.88