Minor fluctuations in local Chinese rebar and wire rod market

During the week ending March 20, in the Chinese domestic market rebar prices in Beijing have softened slightly, while rebar prices in Guangzhou have edged up a little and rebar prices in Shanghai have remained unchanged. In addition, in the given week, domestic wire rod prices in China have moved on a rising trend in Guangzhou and Shanghai, while trending sideways in Beijing. Meanwhile, transaction activity for both rebar and wire rod in the Chinese domestic has been at medium levels. On March 20, rebar futures contract (1705) offers closed at RMB 3,581/mt ($519/mt) at Shanghai Futures Exchange, down $1/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

During the given week, semi-finished steel prices in the Tangshan region edged up in the first part of the week, exerting a positive impact on Chinese domestic rebar and wire rod prices. Then, in the latter part of the week, prices corrections were seen in the domestic rebar and wire rod spot market due to slack transaction activity. Meanwhile, steelmakers' inventories have continued to decrease, providing support for domestic rebar and wire rod prices. However, as the end of the month is approaching, some traders have been experiencing tight liquidity and may reduce prices in order to increase sales and bring in cash. It is thought that domestic rebar and wire rod prices in China will likely fluctuate or move down slightly 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 6.90