Local Chinese rebar and wire rod prices indicate downward trends

During the week ending September 11, Chinese domestic rebar and wire rod prices have indicated an overall downtrend, while transaction activity in the domestic rebar and wire rod market has been at low-to-medium levels. On September 11, rebar futures contract (1801) offers closed at RMB 3,915/mt ($600/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, rebar futures prices have moved up, exerting a positive impact on rebar and wire rod prices in the spot market, while downstream users have been unwilling to conclude purchases at high prices. In the latter part of the given week, inventory level has increased, negatively affecting rebar and wire rod prices. Until now, good expectations for the peak season in September have not realized, resulting in bearish sentiment among market participants. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge down further 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 6.52