During the week ending December 15, in the Chinese domestic market rebar and wire rod prices have indicated an overall downward movement, while transaction activity for both rebar and wire rod in the local Chinese market has been at low levels. On December 15, rebar futures contract (1505) offers closed at RMB 2,570/mt ($415/mt) at Shanghai Futures Exchange, up $4/mt week on week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.
During the given week, demand for long steel in the Chinese domestic market has continued to decline, with consumption in northern China almost grinding to a standstill, and so rebar and wire rod traders have been obliged to lower their sales prices. Meanwhile, steelmakers in northern and eastern China have cut their ex-works prices for rebar and wire rod as they seek to reduce their inventory levels. Moreover, more and more rebar and wire rod supplies from northern China have been flowing into southern China, contributing to the sharp declines in rebar and wire rod prices in the given week. It is expected that rebar and wire rod prices in the Chinese domestic market will continue to move down further in the coming week due to slack demand and the lack of support from iron ore prices - currently at low levels - for finished steel prices.
$1 = RMB 6.19