Local Chinese rebar and wire rod prices move up

During the week ending August 3, average prices of Chinese domestic rebar and wire rod have moved up amid the uptrend in rebar futures prices and the high levels of iron ore prices.

During the given week, Jiangsu Province-based major Chinese steelmaker Shagang Group has raised its ex-works prices for rebar and wire rod by RMB 50/mt ($7/mt) for the August 1-10 period, exerting a positive impact on rebar and wire rod prices in the spot market. Meanwhile, rebar futures prices at Shanghai Futures Exchange (SHFE) have indicated a rising trend, bolstering the rebar and wire rod market. However, inventory levels of rebar and wire rod have increased, which will negatively affect prices. Moreover, typhoon weather in August will also reduce demand for rebar and wire rod, though the high levels of iron ore prices will provide support for prices. It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a limited range in the coming week.

On August 3, rebar futures contract (2010) offers closed at RMB 3,834/mt ($548/mt) at Shanghai Futures Exchange, up RMB 111/mt ($16/mt) or by 3.0 percent since July 27, signaling bullish sentiment as regards the future prospects for the market.

Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.  

Rebar prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse.

Wire rod prices in local markets

All prices include 13 percent VAT and all prices are ex-warehouse. 

$1 = RMB 6.998