Local Chinese rebar and wire rod prices move down

During the week ending June 10, average prices of Chinese domestic rebar and wire rod have moved down, while transaction activity in the overall domestic rebar and wire rod market has been at medium levels. On June 10, rebar futures contract (1910) offers closed at RMB 3,717/mt ($536/mt) at Shanghai Futures Exchange, down $1/mt week on week due to changes in exchange rate between Chinese currency and U.S. dollar. 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 prices in China have moved on an overall downtrend, while downstream users have been seeking to conclude purchases at lower levels following the recent Dragon Boat Festival holiday. Domestic steelmakers’ rebar and wire rod outputs have decreased slightly due to reduced profitability and the decreased inventories in the market will provide some support for rebar and wire rod prices. However, hot and rainy weather conditions are expected to exert a negative impact on demand for rebar and wire rod. On the other hand, relatively high iron ore prices will bolster rebar and wire rod prices from the cost side. It is expected that rebar and wire rod prices in the Chinese domestic market will soften by a limited margin 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 6.93