Local Chinese rebar and wire rod prices move down significantly

During the week ending January 8, Chinese domestic rebar and wire rod prices have indicated significant decreases, while transaction activity in the overall domestic rebar and wire rod market has been at low levels. On January 8, rebar futures contract (1805) offers closed at RMB 3,818/mt ($588/mt) at Shanghai Futures Exchange, up $9/mt 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, domestic demand for rebar and wire rod has not shown any improvement after the New Year holiday, especially given the widespread snowy weather seen in the latter part of the week. Meanwhile, inventory levels have increased, exerting negative pressure on rebar and wire rod prices in the spot market. Following the price decreases already recorded, rebar and wire rod prices could gain support in the near future as steelmakers will step up their maintenance works, which will result in lower supply to the market. It is thought that rebar and wire rod prices in the Chinese domestic market may edge down slightly 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 6.50