Some improvement in sentiment in local Chinese rebar and wire rod market

Monday, 28 July 2014 13:23:34 (GMT+3)   |   Shanghai
During the week ending July 28, rebar and wire rod prices in the Chinese domestic market have indicated downward movement in many regions, with prices in other regions remaining stable, while overall transaction activity for rebar and wire rod has remained at poor levels. On July 28, rebar futures contract (1501) offers closed at RMB 3,076/mt ($496/mt) at Shanghai Futures Exchange, up RMB 34/mt ($5/mt) compared to the previous week. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.

Due to sluggish demand, traders have not been so confident on the prospects for future business, with the result that they have reduced their offer prices for rebar and wire rod, while prices in eastern China have seen bigger declines. Meanwhile, drops in iron ore prices have also exerted a negative impact on rebar and wire rod prices. However, in recent days the stock markets in China have indicated successive rising movements, reflecting optimistic attitudes on the prospects for the commodity and financial markets in the third quarter, and contributing to some improvement in sentiment in the Chinese long steel market. It is expected that rebar and wire rod prices in China will see a slight rebound in the coming week.


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