Signs of weakness in local Chinese rebar and wire rod market

During the week ending January 11, rebar prices have moved on a stable trend, while wire rod prices in Beijing and Shanghai have indicated a rising trend. 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 1,758/mt ($268/mt) at Shanghai Futures Exchange, down $5/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below.

Amid a lack of support from real demand, the uptrend of rebar prices has come to a halt, while transaction activities have been at low levels. Meanwhile, iron ore futures prices have softened, weakening support for finished steel prices. Inventory levels of rebar and wire rod have increased slightly, which will weaken support for rebar and wire rod prices. Sentiment as regarding the future prospects for the market has started to shift from bullish to bearish. It is thought that rebar and wire rod prices will likely move sideways or indicate a slight downtrend 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 6.58