Local Chinese rebar and wire rod prices mostly increase

As of December 17, 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 low-to-medium levels. On December 17, rebar futures contract (1905) offers closed at RMB 3,435/mt ($498/mt) at Shanghai Futures Exchange, up $17/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 in China edged down, exerting a negative impact on rebar and wire rod prices in the domestic spot market. However, as the end of the week drew closer, rebar futures prices increased due to production cuts in some regions of the country, causing buyers in the spot market to step up their purchases. Furthermore, steelmakers’ reduced production also contributed to increases in rebar and wire rod prices in the spot market. Although demand for rebar and wire rod will be slacker approaching the end of the year and the New Year holiday, some construction sites are planning to speed up their activities before the end of the year, which will provide some support for demand for long steel. Rebar and wire rod prices in the Chinese domestic market are expected to edge up slightly 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 6.90