SunSirs: Rebar and wire prices increased significantly this week (03.13-03.20)

1. Price trend

According to SunSirs price monitoring, the price of threaded wire this week (03.13-03-20) has increased significantly compared to last week. Today (03.20) the mainstream quotation of HRB400 thread of big factory is between 3530-3580 yuan / ton, and the mainstream quotation of HRB300 wire of large factory is between 3600-3660 yuan / ton, which is an increase of about 75 yuan / ton from the beginning of the week.

2. Factors  

Demand for supply and demand: Today (03.20), the market price of some common carbon billets in Tangshan area has increased by 10 yuan. The current factory price including tax is 3160 yuan / ton, and the ex-factory price of rectangular billet is 3180 yuan / ton. The total social stock of rebar is about 19.817 million tons, a decrease of 2.37% from the previous week and about 480,000 tons; the total social stock of wire rods is about 4.38 million tons, a decrease of 160,000 tons from last week. Since last week, the growth rate of the total building material social inventory has started to slow down significantly. Due to the steel plant's production limitation plan, production reduction plans and further downstream demand release, the turning point of the building material social inventory appeared this week, and the total amount began to decrease. As the downstream enterprises resume work, the demand for building materials in the later period will gradually increase, and the pressure on the supply side will reduce the spiral price.

In terms of market: Last Friday, the spiral market price fluctuated and consolidated. The thread prices of major manufacturers remained at about 3470 yuan / ton, and the major wire prices of major factories remained at about 3550 yuan / ton. At the beginning of this week, due to the obvious rise in the futures market, wire spiral The spot price also rose sharply to a high level. The thread price of Dachang was around 3550 yuan / ton, and the wire price of Dachang was around 3620 yuan / ton. At this time, the market was in a good trading atmosphere, business confidence was boosted, and the steel mills were very pricey. Willingness was strong, but then came a period of price consolidation on Wednesday. At the end of this Wednesday afternoon, the price of the spiral fell and the market enthusiasm cooled down, but the spot market price remained stable. The market opened on Thursday. Affected by a wave of turbulence in the global financial market, the domestic building materials futures market plummeted, shipments were hovering at a low level, the trading atmosphere was severely inadequate, and transactions tended to be sluggish. Today, the price of snails pulled back slightly after a strong pullback, and then oscillated. It finally closed at 3483 yuan / ton, which was 22 yuan / ton higher than the settlement price of the previous trading day. In the spot market, today's low-level resources have moved up, and prices have risen steadily. Business sentiment has improved, mainly based on shipments, and average transaction performance.

3. Market Forecast

The inflection point of inventory has arrived, and demand is gradually warming. It can be seen from the recent resumption of work that the central government has recently issued a series of policies and measures to support the promotion of resumption of work. With the support of relevant policies, the rate of resumption of work in downstream and downstream enterprises has increased significantly. As a result, the demand for building materials is also rising, and the speed of steel circulation will gradually increase. This will provide partial support for building materials prices. Taken together, there is still room for growth in the return to work rate. With the arrival of the peak season for building materials consumption, the total inventory of building materials is expected to continue to decrease in the future. However, due to the short-term high inventory is still waiting to be digested, and the international economic and financial markets fluctuate repeatedly, it is expected that the price of building materials will fluctuate weakly in the short term.

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