Local Chinese rebar and wire rod prices post moderate decline

During the week ending June 7, average Chinese domestic rebar and wire rod prices have moved down following increases in the previous week, due to the declines in ferrous metal futures prices. The recent losses have been moderate, but a bearish outlook prevails in the market.

During the given period, the average rebar price has lost RMB 57/mt, while the average wire rod price has declined by RMB 63/mt. The greatest weakening has been seen today, June 7 with the average rebar prices losing RMB 40/mt since Friday.  

At the beginning of the given week, rebar futures prices bottomed up, easing the bearish sentiments and pushing up rebar and wire rod prices in the spot market. However, later, ferrous metal futures prices edged down again, exerting a negative impact on the spot market. The inspections of capacities in Tangshan have been continuing, and will limit the supply of rebar and wire rod, providing support for prices. However, with the traditional offseason approaching, demand for rebar and wire rod will weaken and this will negatively affect their prices in the near future.

On June 7, rebar futures contract (2105) offers closed at RMB 4,959/mt ($775/mt) at Shanghai Futures Exchange, down RMB 68/mt ($10.6/mt) or by 1.35 percent compared to May 31, signaling market players’ bearish sentiments as regards the future prospects for the rebar market. Since Friday, rebar futures have dropped by RMB 216/mt ($33.8/mt) or 4.17 percent, fully offsetting the rises last week.

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 6.3963