Local Chinese rebar and wire rod prices rise amid strong demand expectations 

During the week ending March 8, average Chinese domestic rebar and wire rod prices have moved up as demand is expected to post strong growth due to infrastructure investments announced by the government.

During the given period, the average rebar price has gained RMB 107/mt, while the average wire rod price has gained RMB 113/mt. 

A sharp increase has been seen on Monday, March 8, with average rebar prices rising by RMB 70/mt, fully offsetting the loss in prices seen late last week. During the given week, rebar futures prices mostly moved up, bolstering rebar prices in the spot market, though a big decline was seen at the end of last week. The market has risen on Monday, mainly being driven by good expectations for housing and railway construction after the “two sessions” meetings of China’s political leadership in Beijing. For now, relatively high inventories are still putting pressure on the current market situation. 

On March 8, rebar futures contract (2105) offers closed at RMB 4,752/mt ($733/mt) at Shanghai Futures Exchange, up RMB 113/mt ($8.8/mt) or by 2.44 percent compared to March 1 and up by 0.72 percent compared to the previous trading day (March 5), signaling market players’ bullish sentiments as regards the future prospects for the rebar market amid production restrictions and good demand.

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 6.4795