Local Chinese rebar and wire rod prices mostly decrease

As of September 17, average prices of Chinese domestic rebar and wire rod have mostly decreased 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 September 17, rebar futures contract (1901) offers closed at RMB 4,100/mt ($597/mt) at Shanghai Futures Exchange, down $27/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, domestic semi-finished steel prices increased, exerting a positive impact on rebar and wire rod prices in the domestic market. However, due to the rumors of an easing of environmental protection measures, rebar futures prices decreased significantly in the middle of the given week, dragging down rebar and wire rod prices in the spot market. Later, China's Ministry of Ecology and Environment refuted the rumors in question, resulting in a rebound in rebar futures prices, which boosted rebar and wire rod prices in the spot market. Supply of rebar and wire is unlikely to increase significantly due to environmental protection measures, and this will provide support for prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move sideways 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 6.87