Local Chinese rebar and wire rod prices rise despite seasonal demand slowdown

During the week ending July 19, average Chinese domestic rebar and wire rod prices have edged up amid the increasing rebar futures prices as production cuts are expected to be severe in the second half.

During the given period, the average rebar price has gained RMB 120/mt, while the average wire rod price has improved by RMB 117/mt. 

Rebar and wire rod prices have moved up further amid the prevailing bullish sentiments among market players and rising rebar futures prices, though demand has not improved, staying reduced in the off-season. At the same time, production restriction fears and already started inspections have been impacting the rebar and wire rod market, though demand has not seen significant improvement. Nevertheless, since China aimed to curb the big rises in commodity prices, it is thought that rebar and wire rod prices may move on a downward correction in the coming week. 

On July 19, rebar futures contract (2105) price closed at RMB 5,432/mt ($860.6/mt) at Shanghai Futures Exchange, up RMB 136/mt ($21.0/mt) or by 2.5 percent compared to that recorded on July 12, signalling market players’ bullish sentiments towards the prospect for the future rebar 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 6.47