Slack activity in local Chinese rebar and wire rod market

During the week ending February 1, rebar prices have indicated a rising trend in Beijing, while declining in Guangzhou, though remaining stable at Shanghai. Wire rod prices in the domestic market have moved on a stable trend. Transaction activity in the domestic rebar and wire rod market has been at low levels. On February 1, rebar futures contract (1605) offers closed at RMB 1,819/mt ($280/mt) at Shanghai Futures Exchange, down $3/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 cold weather in northern China and snowfalls in southern China have negatively affected activity at construction sites. In addition, most construction workers have been going home ahead of the Chinese New Year (February 8-14), and so activity at construction sites has been grinding to a halt. Currently, demand for rebar and wire rod in most regions of China is very slack, except in southern China. It is expected that rebar and wire rod prices in the Chinese domestic market will remain on a stable trend in the coming week as market participants will likely keep their prices unchanged in the final working week before the long holiday.

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 6.58