Local Chinese rebar and wire rod prices mostly decrease

As of December 10, average prices of Chinese domestic rebar and wire rod have mostly declined 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 December 10, rebar futures contract (1905) offers closed at RMB 3,313/mt ($481.0/mt) at Shanghai Futures Exchange, down $1/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Following the rapid rises seen in domestic rebar and wire rod prices at the beginning of the given week, rebar and wire prices in China have decreased again in the latter part of the week due to slack demand from downstream users. In the given week, Chinese steelmakers’ output of rebar and wire rod has declined slightly and this trend will likely continue in the near future. Meanwhile, cold and snowy weather conditions have also contributed to the further slackening of demand. Moreover, rebar futures prices at Shanghai Futures Exchange (SHFE) have decreased in the latter part of the given week, exerting a negative impact on rebar and wire rod prices in the domestic spot market. However, inventory levels of rebar and wire rod have decreased, which will likely provide some support for prices. It is expected that rebar and wire rod prices in the Chinese domestic market will 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 6.91