Weather impacts local Chinese rebar and wire rod market

During the week ending November 16, rebar and wire rod prices have mostly moved on a downtrend in local markets in China, though prices in southern China have indicated a stable trend, while transaction activity in the domestic rebar and wire rod market has been slacker than in the previous week in northern and eastern China, where it is now at low levels, whereas activity is at decent levels in southern China. On November 16, rebar futures contract (1601) offers closed at RMB 1,753/mt ($275/mt) at Shanghai Futures Exchange, down $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 given week, consumption of rebar and wire rod has remained at decent levels in southern China, resulting in stable prices there. However, temperatures in northern China have been dropping, negatively affecting demand for rebar and wire rod in the region. Lately, it has been mostly rainy in eastern China, which exerts a negative impact on activities at construction sites. 

 

As for the coming period, the weather will continue to be the main factor affecting rebar and wire rod prices in the Chinese domestic market, especially in northern and eastern China. Meanwhile, surplus rebar and wire rod supplies from northern China will likely be directed towards southern China, which will drag down prices in the south. It is thought that price of rebar and wire rod in the Chinese domestic market will likely follow an overall downward trend in the coming week, though with larger declines anticipated in northern and eastern China. 

 

 

 

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 6.37