Local Chinese rebar and wire rod prices move on fluctuating trend

During the week ending April 1, average prices of Chinese domestic rebar and wire rod have fluctuated within a limited range, while transaction activity in the overall domestic rebar and wire rod market has been at low levels. On April 1, rebar futures contract (1910) offers closed at RMB 3,497/mt ($521/mt) at Shanghai Futures Exchange, up $5/mt compared to RMB 3,461/mt ($516/mt) recorded for rebar futures contract 1910 on March 25. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

During the given week, demand in eastern and southern China has been slack, resulting in price declines in those areas, while rebar and wire rod prices have been firm in northern China. At the beginning of the given week, rebar futures prices at Shanghai Futures Exchange (SHFE) moved down sharply, though they moved up again later in the week, contributing to the fluctuations in domestic rebar and wire rod prices. Inventories of rebar and wire rod have decreased again but at a slower pace. Meanwhile, with a VAT rate reduction due to come into effect as of April 1, buyers have been cautious. On the other hand, rebar and wire rod outputs have risen slightly and will likely continue to increase due to good profit margins for steelmakers at present. It is expected that rebar and wire rod prices in the Chinese domestic market will increase in the coming week amid better demand.  

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 6.71