Positive sentiment in local Chinese rebar and wire rod market

During the week ending December 12, Chinese domestic rebar and wire rod prices have moved on an upward trend, while transaction activity in the domestic rebar and wire rod market has been at decent levels. On December 12, rebar futures contract (1705) offers closed at RMB 3,444/mt ($498/mt) at Shanghai Futures Exchange, up $35/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, the closure of many illegal intermediate frequency melting furnaces in the provinces of Jiangsu and Hubei has resulted in reduced supply of rebar and wire rod in the spot market, boosting confidence among market players. Meanwhile, futures prices in China have indicated significant increases, providing support for rebar and wire rod prices in the domestic spot market. Amid positive sentiment on the future prospects for the market, traders are now mostly reluctant to sell their inventories, which are at low levels. It is thought that rebar and wire rod prices in the Chinese domestic market will likely continue their rising trend 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 6.91