SunSirs: This Week, Rebar and Wire Rod Prices Slightly Decreased (August 7-11)

Price trend

According to the price monitoring of SunSirs, the prices of t rebar and wire rod in the Jiangsu, Zhejiang and Shanghai regions had slightly decreased this week. As of the 11th, the average price of HRB400 thread steel in the Jiangsu, Zhejiang and Shanghai regions was about 3,646.22 RMB/ton, a decrease of 0.85% compared to the beginning of the week; The average high line price of HPB300 in the Jiangsu, Zhejiang and Shanghai regions was 3,859.2 RMB/ton, a decrease of 0.41% compared to the beginning of the week.

Analysis review

Market aspect: As the weekend approached, the national engineering demand was 56,036 tons, a 24.6% decrease 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 coke market continued to be stable; Port iron ore rebounded slightly; The decline of the scrap steel market slowed down and was operating weakly and steadily. Affected by the downturn in the real estate industry, the amount of steel used in real estate had significantly decreased. In June, the newly constructed area of real estate was only 101.57 million square meters, equivalent to the level of 2009. There were rumors in the market that production was limited in various regions, which provided some support for the market of rebar and wire rod.

Market outlook

There was not much change in demand this week, and there was a certain accumulation of inventory. It is expected that in the short term, the prices of rebar and wire rod will be mainly weaker in shock.

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