SunSirs: Domestic Mild Steel Plate Prices Rose by 0.59% (September 5-12)

Price trend

From the previous Friday to last Thursday, rebar futures contracts fluctuated and weakened, with a deliberate slowdown in terminal purchases. Market activity was relatively sluggish, and quotes across various regions loosened slightly. However, near last Friday, rebar futures prices rebounded, signaling a rebound in market sentiment. According to the SunSirs Commodity Market Analysis System, the price of standard mild steel plate (material: Q235B; specification: 20) was 3,392 RMB/ton on September 12, a 0.59% increase from the previous Friday.

Influencing factors

Billet Market: Domestic billet prices remained stable with slight adjustments last week. As of September 12th, the tax-inclusive price of standard square billet in Tangshan was 2,990 RMB/ton, unchanged from the previous week. Inventory levels at major warehouses in Tangshan stood at 1.085 million tons, down 63,500 tons from the previous week. Recently, rolling mills, previously restricted due to environmental protection, have gradually resumed production, resulting in healthy demand for billet. Trading activity for low-priced resources has improved slightly, and inventories at major warehouses have declined rather than increased. Furthermore, the ferrous metal market saw frequent fluctuations, with spot prices remaining stable with slight adjustments. Considering the weakening and consolidation of downstream finished product inventory and the slight decline in inventory levels, billet manufacturers are cautiously operating. We anticipate a period of volatile consolidation in the domestic billet market next week.

Supply and Demand

Continued heavy rain in central and southwestern China has hindered the smooth progress of outdoor construction. Furthermore, the availability of funds at construction sites has declined month-over-month, leading to a slowdown in end-user purchasing demand and a low overall apparent demand.

Market outlook

Overall, last week marked the arrival of the "White Dew" solar term, bringing relatively cool morning and evening temperatures. Daytime temperatures remained high across much of the country, with typhoons and heavy rains in some areas. Terminal demand remained low, and rebar inventories have increased for nine consecutive weeks, reaching a four-month high, putting pressure on the construction steel market. Furthermore, construction steel companies were struggling to generate profits, with rebar production declining month-over-month. They were proactively reducing production and offering discounts. In mid-September, steel companies in Shayongzhong were offering discounts of only 10% to 45% on rebar. With the National Day holiday approaching, market expectations are strengthening, and the domestic mild steel plate market is expected to improve next week.

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