Price trend

In the first half of the week, due to production restrictions in Tangshan, market sentiment improved, and rebar futures prices fluctuated upward, with prices rising slightly across the board. In the second half of the week, strong short positions pushed prices down, slowing terminal purchases. Some merchants sold goods at low prices, causing prices to fall across the board. According to the SunSirs Commodity Market Analysis System, the price of ordinary mild steel plate (material: Q235B; specification: 20) was 3,422 RMB/ton on August 15, up 0.29% from the previous Friday.

Influencing Factors

Bill Market: Domestic billet prices fluctuated and fell last week. As of August 15th, the tax-inclusive price of standard square billet in Tangshan was 3,060 RMB/ton, a 20 RMB/ton decrease from the previous week. Inventory levels at major warehouses in Tangshan stood at 943,700 tons, an increase of 33,500 tons from the previous week. As September approaching, some rolling mills in Tangshan were restricting production, reducing demand for billet and focusing on on-demand purchases. Inventories at major warehouses continued to accumulate, reaching their highest level since March. Considering environmental protection production restrictions at some steel mills and sluggish billet shipments, the domestic billet market is expected to be adjusted to be weaker next week.

Supply and Demand

Last week saw continued high temperatures across the country, with localized torrential rain and flooding, and end-user demand remained in the off-season. In the first half of the week, futures prices were generally stronger, with decent shipments. However, in the second half of the week, futures prices saw a volatile decline, with end-user purchases slowing, and overall market shipments weakening.

Market outlook

Overall, high temperatures and heavy rainfall impacted construction, exacerbating the contraction of the real estate industry, leading to a decline in excavator operating rates and a decrease in apparent demand for construction steel, demonstrating a clear off-season trend. Furthermore, the gradual rollover of the main rebar futures contract, coupled with a volatile downward trend, had weakened market sentiment, with some traders cashing out at low prices, leading to a slight decline in spot prices. In addition, next week, Tangshan and other places will increase production restrictions, and supply will decrease, but demand is limited, speculation is cautious, and there is a lack of driving force for the consolidation of raw materials. It is expected that the domestic mild steel plate market will be weak and stable next week.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.