Local Chinese rebar and wire rod prices move down significantly

As of December 25, Chinese domestic rebar and wire rod prices have seen significant decreases, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On December 25, rebar futures contract (1805) offers closed at RMB 3,787/mt ($578/mt) at Shanghai Futures Exchange, down $7/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

Rebar futures prices in China have edged down at the beginning of the given week but have moved up again in the following days, while on December 25 they have seen a significant decrease. This fluctuating trend of the rebar futures prices in China has affected rebar and wire rod prices in the spot market. Currently, demand has been slack in the local Chinese rebar and wire rod market as cold weather in winter season negatively affects activities in construction sites. Meanwhile, inventory levels of rebar and wire rod in the spot market and on steelmakers’ side have increased, exerting a negative impact on rebar and wire rod prices. Additionally, due to the approaching end-of-year, Chinese traders have been bothered by financial tightness. However, Chinese rebar and wire rod producers’ ex-works prices are at quite high levels, which will provide certain support to rebar and wire rod prices. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move on a weak downtrend in the coming week.

Wire rod prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse

Rebar prices in local Chinese market

All prices include 17 percent VAT and all prices are ex-warehouse

$1 = RMB 6.55