Local Chinese rebar and wire rod prices soften due to influence of futures market

As of October 30, Chinese domestic rebar and wire rod prices have mostly indicated a further decrease on week-on-week basis, while transaction activity in the domestic rebar and wire rod market has been at low-to-medium levels. On October 30, rebar futures contract (1801) offers closed at RMB 3,571/mt ($537/mt) at Shanghai Futures Exchange, down $21/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, rebar and wire rod prices in China gained support from rising semi-finished steel prices and moved upwards. Meanwhile, inventories held by steelmakers decreased slightly and steelmakers’ outputs will likely decline in the future as production cuts continue. Later in the week, rebar futures prices moved down, resulting in decreases in rebar and wire rod prices in the spot market. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways in the coming week.

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 6.65