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SunSirs: Wire and rebar prices tend to stabilize after price increases (5.18-5.22)

May 25 2020 09:16:07     SunSirs (Molly)

1. Price Trend

According to SunSirs price monitoring, this week's (5.18-5.22) rebar steel wire prices have risen significantly compared to last week. Today's major manufacturers 'HRB400 thread mainstream offers are around 3560-3630 yuan / ton; major manufacturers' HRB300 wire mainstream prices are around 3690-3720 yuan / In terms of tons, the overall prices of wire rods and rebar have increased significantly from last Friday, with adjustments ranging from 70-100 yuan / ton.

2. Factors affecting price

In terms of supply and demand, as of today (05.22), the total stock of rebar stocks was 120.352 million tons, a decrease of 6.2% from last week and about 792,700 tons, and the rate of deceleration was slightly lower than last week ’s 920,000 tons. The total stock of wire stocks was 12.03 million tons, a decrease of about 800,000 tons from the previous week. Due to the news that production restrictions were relaxed in Tangshan on the evening of the 19th, it is expected to cause certain pressure on the market, and the contradiction between supply and demand will still become the limit spiral price. The main factor. As for steel mills, due to the firm prices of raw materials such as coke, iron ore and scrap steel, steel mills still have a strong willingness to increase prices. Shagang and Zhongtian introduced the construction steel price adjustment policies in late May this week, and the prices of rebar, wire rod and coiled screw were all increased by 50 yuan / ton compared with mid-May. In terms of demand, the apparent demand for rebar this week was 4.78 million tons, which was basically the same as last week's 4.76 million tons and entered the peak demand season. Construction of downstream infrastructure projects continues, and demand remains to be released.

In terms of market, the prices of wire rod and rebar first rose this week and then stabilized. At the beginning of the week, Tangshan Pu's billet prices rose sharply and news of production restrictions drove the market prices, and the snails became popular all the way up, and the spot market prices also rose. Beginning on Wednesday, due to the unfavorable news that the production restrictions have been relaxed, and the continuous pull up has made the trading of high-level resources unsuccessful, business sentiment tends to be cautious, rebar futures have weakened one after another, and prices have loosened downwards, but overall transactions have performed well. Today, the spiral price has been steadily decreasing. Due to the unwillingness of merchants to ship at low prices, they have adopted a wait-and-see attitude, and the overall transaction performance is average.

In terms of futures, this week's main thread futures rose first and then declined in 2010. The second-phase snail rose sharply this week and began to weaken on Wednesday. Today's futures rebar fluctuated downward. The main thread 2010 contract fell by 40 yuan / ton from the previous working day , Finally closed at 3508 yuan / ton.

3. Market forecast

Downstream infrastructure projects continued to be started, and the release of demand accelerated gradually, but due to continued price increases, high-level resource transactions tended to be cautious. The news of Tangshan's production restriction and relaxation has also made subsequent supply pressures greater, and the market has a wait-and-see mood. It is expected that in the short term, the spiral snail prices will mainly rise slightly.

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