Signs of correction in local Chinese rebar and wire rod market

During the past week ending August 14, Chinese domestic rebar and wire rod prices have shown diverse trends, with rebar prices in Shanghai indicating declines and wire rod prices in Shanghai remaining stable, though prices in other areas have risen on week-on-week basis, while transaction activity in the domestic rebar and wire rod market has been at low-to-medium levels. On August 14, rebar futures contract (1801) offers closed at RMB 3,807/mt ($571/mt) at Shanghai Futures Exchange, down $36/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 increased as semi-finished steel and rebar futures prices in China rose significantly following news of capacity elimination due to environmental protection measures. However, approaching the end of the week, rebar futures prices indicated downward corrections, exerting a negative impact on the rebar and wire rod spot market. Downstream users have been less willing to conclude rebar and wire rod purchases at the current relatively high price levels. It is thought that Chinese domestic rebar and wire rod prices will likely see downward corrections 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 6.67