Local Chinese rebar and wire rod prices mostly up amid better demand

During the week ending September 7, average prices of Chinese domestic rebar and wire rod have mostly moved up amid the rising trend of futures prices in the first part of the given week and some improvement seen in demand recently.

Average rebar prices have increased by RMB 13/mt over the past week, while average wire rod prices have risen by RMB 17/mt. During the given week, rebar futures prices moved up first while edging down in the past two trading days, which has had the effect of cooling market players’ bullish sentiments, though they still expect good demand for rebar and wire rod in the traditional peak season. Steelmakers have been seeking to raise prices, while construction sites have also sped up their activities to offset the slowdown of construction activities in the recent rainy season. Inventory is at relatively high levels, which has exerted negative pressure on the rebar and wire rod market. It is expected that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

On September 7, rebar futures contract (2101) offers closed at RMB 3,736/mt ($546/mt) at Shanghai Futures Exchange, down RMB 43/mt ($6.3/mt) or 1.14 percent since August 31, and down 0.59 percent from the previous trading day, signaling market players’ cautious sentiments towards the future prospects for the market.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Rebar prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

 Wire rod prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

$1 = RMB 6.8386