Local Chinese rebar and wire rod prices increase

During the week ending April 8, average prices of Chinese domestic rebar and wire rod have increased, while transaction activity in the overall domestic rebar and wire rod market has been at medium levels. On April 8, rebar futures contract (1910) offers closed at RMB 3,730/mt ($555/mt) at Shanghai Futures Exchange, up $39/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, ferrous metal futures prices in China have increased, exerting a positive impact on rebar and wire rod prices in the domestic spot market. Meanwhile, due to the Tomb-Sweeping Day holiday (April 5-7), some downstream users concluded purchases to replenish their stocks. The capacity utilization rates of rebar and wire rod producers have been higher as of April 1 due to the ending of winter season production restrictions in northern China. At the same time, the reduction of the value-added tax rate will release some additional demand from downstream users, which will bolster rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move up 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 6.72