Local Chinese rebar and wire rod prices mostly edge up slightly

During the week ending May 20, average prices of Chinese domestic rebar and wire rod have mostly edged up slightly, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On May 20, rebar futures contract (1910) offers closed at RMB 3,780/mt ($547/mt) at Shanghai Futures Exchange, up $10/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, there were sufficient supplies arriving in the market against the backdrop of slack demand from downstream users, resulting in declines in rebar and wire rod prices. Later in the given week, rebar futures prices in China rebounded, exerting a positive impact on rebar and wire rod prices in the spot market. However, market players are cautious about the future prospects for the market. Currently, steelmakers’ profitability is quite good and so their production is at fairly high levels, which will negatively affect rebar and wire rod prices. At the same time, demand has been relatively good, which will bolster rebar and wire rod prices in the short term, though the long-term expectations are that demand will slacken. It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range 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 6.91