Local Chinese rebar and wire rod prices move on diverse trends

As of March 5, average prices of Chinese domestic rebar and wire rod have indicated diverse trends on week-on-week basis, with rises seen in Guangzhou and declines observed in Beijing and Shanghai, while transaction activity in the overall domestic rebar and wire rod market has been at low-to-medium levels. On March 5, rebar futures contract (1805) offers closed at RMB 3,957/mt ($624/mt) at Shanghai Futures Exchange, down $14/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, due to big rises seen in semi-finished steel and rebar futures prices, market participants raised their offer prices for rebar and wire rod. However, demand was slack ahead of the Lantern Festival (March 2) as many market players had not returned to the market. Inventory levels in the spot market have increased significantly in the given week, while inventories on the steelmakers’ side have decreased. It is thought that rebar and wire rod prices in the Chinese domestic market will likely edge up in the coming week, though market participants will be attentive to potential risks from continuous rises in prices of rebar and wire rod as some traders may sell previously-bought low-cost products in order to bring in cash.

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 6.34