SunSirs: This Week, Rebar and Wire Rod Prices Slightly Decreased (July 31-August 4)

Price trend

According to the price monitoring of SunSirs, the prices of rebar and wire rods in the Jiangsu, Zhejiang and Shanghai regions had slightly decreased this week. As of the 4th, the average price of HRB400 rebar in the Jiangsu, Zhejiang and Shanghai regions was about 3,680 RMB/ton, a decrease of 1.33% compared to the beginning of the week; The average high line price of HPB300 in the Jiangsu, Zhejiang and Shanghai regions was 3,910 RMB/ton, a decrease of 0.94% compared to the beginning of the week.

Analysis review

Market aspect: As the weekend approached, the national engineering demand was 66,994 tons, a 65% increase in demand compared to the previous trading day. In the first half of the year, the construction area of real estate development enterprises' houses was 791,548 million square meters, a year-on-year decrease of 6.6%. Among them, the residential construction area was 5,570.83 million square meters, a decrease of 6.9%. The newly constructed area of houses was 498.8 million square meters, a decrease of 24.3%. Among them, the newly constructed residential area was 363.4 million square meters, a decrease of 24.9%. The completed area of houses was 339.04 million square meters, an increase of 19.0%. Among them, the completed residential area was 246.04 million square meters, an increase of 18.5%.

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

On the upstream side, the fourth round of increase in the coke market of 100-110 RMB/ton had basically landed, with a cumulative increase of 300-340 RMB/ton; Port iron ore continued to decline; The scrap steel market was under high pressure and operated weakly. Steel billets had slightly declined, and the closing prices in many regions had significantly declined. The weather had turned sunny, and there were only scattered orders on the construction site. Terminal demand was lower than expected, while downstream demand was sluggish and prices for procurement were being suppressed. Market quotations had been declining one after another.

Market outlook

It is expected that the short-term trend of rebar and wire rods prices will mainly fluctuate to be weaker.

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