Local Chinese rebar and wire rod prices mostly increase

As of October 22, average prices of Chinese domestic rebar and wire rod have mostly increased on week-on-week basis, while transaction activity in the overall domestic rebar and wire rod market has been at medium levels. On October 22, rebar futures contract (1901) offers closed at RMB 4,154/mt ($599/mt) at Shanghai Futures Exchange, remaining stable 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, rebar and wire rod supply in southern and eastern China has been in on the short side, providing support for increases in local rebar and wire rod prices. However, demand in northern China has been slack, causing a slight softening in rebar and wire rod prices in this region. Meanwhile, rebar futures prices at Shanghai Futures Exchange (SHFE) edged up at the beginning of the given week, but decreased significantly towards the end of the week due to sharp declines seen in the stock market. On October 22, rear futures prices have bottomed up due to the improvement in China’s financial markets, which will bolster domestic rebar and wire rod prices in the coming week. However, steelmakers’ outputs have increased, which will likely exert negative impact on rebar and wire rod prices. It is expected that rebar and wire rod prices in China 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 6.94