SunSirs: The Price of Steel Billets Fell and the Price of Rebar and Wire Rod Dropped This Week (June 19-25)

Price trend

According to the price monitoring of SunSirs, as of June 25th, the prices of rebar and wire rod in the Jiangsu, Zhejiang and Shanghai regions was slightly decreased this week. As of the 25th, the average price of HRB400 thread steel in the Jiangsu, Zhejiang and Shanghai regions was about 3,680 RMB/ton, a decrease of 1.92% compared to the beginning of the week; The average high line price of HPB300 in the Jiangsu, Zhejiang and Shanghai regions was 3,918 RMB/ton, a decrease of 2% compared to the beginning of the week.

Analysis review

Market aspect: As the weekend approached, the national engineering demand was 86,349 tons, an increase of 6.7% compared to the previous trading day and a 28% increase compared to the same period last week. From January to May, the national investment in real estate development reached 4,570.1 billion RMB, a year-on-year decrease of 7.2%; Among them, residential investment reached 3,480.9 billion RMB, a decrease of 6.4%. From January to May, the construction area of real estate development enterprises' houses was 779,506 million square meters, a year-on-year decrease of 6.2%. Among them, the residential construction area was 5,484.75 million square meters, a decrease of 6.5%. The newly constructed area of houses was 397.23 million square meters, a decrease of 22.6%.

Inventory and Production: This week, the weekly production of rebar and wire rod increased slightly, while the total inventory of rebar and wire rod decreased slightly.

On the upstream side, the first round of increase in the coke market of 50-60 RMB/ton had not yet been implemented; Port iron ore continued to decline slightly; The scrap steel market was generally stable, with some regions experiencing a slight decline. During the Dragon Boat Festival, Tangshan's steel billets fell weakly, and domestic merchants' spot prices were stable and declined. After the holiday, spot prices in most regions of China had slightly declined. On the first trading day after the holiday, downstream demand had not yet started. Due to the recent concentration of overcast and rainy weather in the south, downstream construction was hindered, and the short-term demand release was slow, resulting in insufficient market confidence.

Market outlook

It is expected that the short-term trend of rebar and wire rode prices will remain volatile and weaker.

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