Upbeat mood in local Chinese rebar and wire rod market

During the week ending February 20, Chinese domestic rebar and wire rod prices have moved on an upward trend, while transaction activity in the domestic rebar and wire rod market has been at medium levels. On February 20, rebar futures contract (1705) offers closed at RMB 3,546/mt ($514/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.

China's infrastructure investment growth is expected to pick up, providing support for domestic rebar and wire rod prices in the market in the given week. Meanwhile, the restrictions on illegal intermediate frequency melting furnaces nationwide have resulted in reduced supply of rebar and wire rod in the spot market, boosting confidence among market players and causing steel mills and traders to increase their rebar and wire rod prices. Steelmakers have stepped up their production after the recent holiday and inquiries have increased significantly, contributing to improved transaction activity compared to the previous week. It is expected that rebar and wire rod prices in the Chinese domestic market will continue their rising trend in the coming week due to the bullish sentiment prevailing in the market.

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 6.88