Slack activity in local Chinese rebar and wire rod market

During the week ending June 19, Chinese domestic rebar and wire rod prices first decreased and then moved back up, with average prices now slightly higher compared to one week ago. Transaction activity in the domestic rebar and wire rod market has been at low levels. On June 19, rebar futures contract (1710) offers closed at RMB 3,140/mt ($456/mt) at Shanghai Futures Exchange, up $16/mt week on week. Average domestic rebar and wire rod prices in China's main markets are presented in the tables below. 

During the early part of the given week, rainy weather in China resulted in slacker demand for rebar and wire rod, negatively impacting prices. However, rebar futures prices rebounded as of the middle of the week, causing downstream users to increase their purchases, providing support for rebar prices in the spot market. While sentiment in the market has improved given the rebound of futures prices, transaction activity would be expected to weaken if rebar and wire rod spot prices increase. It is thought that rebar and wire rod prices in the Chinese domestic market will move sideways 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 6.82