SunSirs: This Week, the Price of Wire Road and Rebar Fluctuated and Fell (May 8-12)

Price trend

According to the price monitoring of SunSirs, as of May 12th, the prices of rebar and wire rods in the Jiangsu, Zhejiang and Shanghai regions rose first and then fell this week. As of the 12th, the average price of HRB400 rebar in Jiangsu, Zhejiang and Shanghai regions was about 3,645.56 RMB/ton, a decrease of 2.32% compared to the beginning of the week; the average high line price of HPB300 Jiangsu, Zhejiang and Shanghai regions was 3,842 RMB/ton, a decrease of 2.09% compared to the beginning of the week.

Analysis review

Market aspect:

As the weekend approached, the national engineering demand was 94,694 tons, an increase of 38.8% compared to the previous trading day and a decrease of 5.5% compared to the same period last week. From January to March, real estate development enterprises received 3,470.8 billion RMB in funds, a year-on-year decrease of 9.0%. Among them, domestic loans amounted to 499.5 billion RMB, a decrease of 9.6%; Utilizing foreign investment of 800 million RMB, a decrease of 22.7%; Self raised funds of 1,017.1 billion RMB, a decrease of 17.9%; Deposit and advance payment of 1,190.9 billion RMB, a decrease of 2.8%; Personal mortgage loans amounted to 618.8 billion RMB, a decrease of 2.9%.

Inventory and output

The weekly production and total inventory of the rebar and wire rod had both decreased this week.

On the upstream side, the coke market had implemented a seventh round of 100 RMB/ton reduction; Port iron ore weakened and declined; The scrap steel market had weakened again, with some regions falling. As of the 12th, raw materials had been continuously declining, and production costs of steel mills had significantly decreased, which had caused a significant drag on the spot market.

Market outlook

It is expected that the domestic rebar and wire rod prices will remain weak and volatile in the short term.

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