SunSirs: The Price of Rebar Increased Sharply on November 20

On November 20, the price of rebar across the country increased significantly compared with that of November 19. The factory price of steel plant increased by 20-60 RMB/ton, and the mainstream price of rebar in large factory increased by 4050-4170 RMB/ton. Last night, the market was in a positive mood due to the upward of future rebar; the spot inventory was at a low level, some specifications of rebar were out of stock, and the spot supply was in short supply, driving dealers to be bullish.

In terms of supply, the price of steel billets in Tangshan increased by 10 RMB today, including tax of 3450 RMB/ton. The price of iron ore and coke was relatively stable. As of November 15, the total social inventory of rebar in China was 4.6875 million tons, about 401500 tons less than that of last week, 7.98% less than that of last week. Today, Tianjin, Cangzhou, Jincheng and other places issued heavy pollution weather warning, and it is expected that the rebar inventory will further decline due to the environmental protection and production restriction policy.

In terms of futures, the future rebar rose sharply. The main RB 2001 contract finally closed at 3676 RMB/ton, 86 RMB/ton higher than the settlement price of the previous working day.

In terms of market, downstream demand is good, and there is a shortage of some specifications in the spot market of rebar. As a result, the overall delivery performance of the market is good due to the shortage of resources. Dealers have raised prices for many times, with a cumulative increase of about 40-60 RMB/ton.

On the whole, the inventory of rebar continues to decline, the spot market resources are in short supply, the transaction is positive, and the expected rebar continues to rise. It is expected that the rebar will run in a small and strong way in the short term.

If you have any questions, please feel free to contact SunSirs with marketing@sunsirs.com.