Rainy weather impacts demand in local Chinese rebar and wire rod market

During the week ending October 24, Chinese domestic rebar and wire rod prices have indicated an overall upward trend, while transaction activity in the domestic rebar and wire rod market has been slacker than in the previous week and is now at low-to-medium levels. On October 24, rebar futures contract (1701) offers closed at RMB 2,491/mt ($368/mt) at Shanghai Futures Exchange, up $7/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 rainy weather brought by Typhoon Haima has negatively impacted demand for rebar and wire rod in China. However, due to the rising trends of futures prices for coke and rebar, some steelmakers and traders have continued to raise their sales prices for rebar and wire rod. While coke futures prices have continued to increase, the upward movement of rebar futures prices has slowed down significantly. In September, finished steel output in China rose by 4.3 percent year on year, resulting in increased supply of rebar and wire rod to the market. It is thought that rebar and wire rod prices in the Chinese domestic market will face downward pressure 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 6.7