Transaction activity improves in local Chinese rebar and wire rod market

During the week ending July 18, Chinese domestic rebar and wire rod prices have indicated an overall upward trend, while transaction activity in the domestic rebar and wire rod market has improved and is now at medium levels. On July 18, rebar futures contract (1610) offers closed at RMB 2,362/mt ($353/mt) at Shanghai Futures Exchange, down $12/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 rainy weather in China subsided and some construction sites which had previously halted their activities have stepped up their purchases of rebar and wire rod, providing some support for rebar and wire rod prices. Meanwhile, expectations of increased demand due to rebuilding work after recent floods will have a positive impact on rebar and wire rod prices in the coming period. However, due to increasing profitability among steelmakers, their capacity utilization rates will rise and so pressure will increase from the supply side. It is thought that rebar and wire rod prices in the Chinese domestic market will likely move sideways 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

$1 = RMB 6.70