Rising trend in local Chinese rebar and wire rod market

During the week ending January 4, rebar and wire rod prices have indicated an overall rising trend, while transaction activity in the domestic rebar and wire rod market has been at low levels. On January 4, rebar futures contract (1605) offers closed at RMB 1,777/mt ($273/mt) at Shanghai Futures Exchange, up $4/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, supply shortages have been seen in some regions, causing traders to increase their sales prices. In the rebar futures market in China, bullish sentiment prevails at least for the short term, boosting traders’ confidence as regards the immediate prospects for the domestic long steel market. However, approaching the Chinese New Year holiday (February 8-14), demand for rebar and wire rod will shrink further, which will exert a negative impact on rebar and wire rod prices. Since inventories have been at relatively low levels, the domestic rebar and wire rod market will likely continue to be characterized by bullish sentiment in the short term. It is thought that rebar and wire rod prices in the Chinese domestic market will likely continue their slight uptrend in the coming week. 

 

 

 

All prices include 17 percent VAT and all prices are ex-warehouse

 

 

 

All prices include 17 percent VAT and all prices are ex-warehouse.

 

$1 = RMB 6.53