No significant demand improvement in local Chinese rebar and wire rod market

As of October 23, Chinese domestic rebar and wire rod prices have mostly indicated decreases on week-on-week bases, while transaction activity in the domestic rebar and wire rod market has been at low-to-medium levels. On October 23, rebar futures contract (1801) offers closed at RMB 3,700/mt ($558/mt) at Shanghai Futures Exchange, down $23/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below. 

In the first part of the given week, rebar and wire rod prices in China have increased with the support of higher semi-finished steel prices, while demand from downstream users for long steel has not improved significantly, causing prices to soften later in the week. However, the inventory levels in the spot market and at steelmakers have decreased slightly. Meanwhile, steelmakers’ output has declined slightly due to strict environmental protection measures. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move up 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 6.64