Chinese rebar and wire rod prices soften as transaction volume declines

Monday, 24 December 2012 14:00:28 (GMT+3)   |   Shanghai
       
During the week ending December 24, rebar and wire rod prices in China have seen slight declines overall, with the average prices of HRB 400 rebar and 8 mm wire rod at $592.7/mt and $575/mt respectively, down by $1.1/mt and $2/mt week on week. On December 24, rebar futures contract (1305) offers closed at $609/mt at Shanghai Futures Exchange, witnessing a slight downward correction. Average domestic rebar and wire rod prices in China's main markets can be viewed in the SteelOrbis price reports section.

In the week before last week, an obvious price rise was observed in the Chinese rebar and wire rod markets. However, there has been no improvement of demand, while the transaction volume has declined, leading to a price correction over the past week. However, increasing costs of iron ore, coke and billet have prevented wire rod and rebar prices from witnessing larger decreases.

It is thought that rebar and wire rod prices in the Chinese domestic market will fluctuate within a narrow range in the short term.


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