SunSirs: Demand Was Weak, and Wire Rod and Rebar Prices Dropped Weakly in October

Price trend

According to the price monitoring of SunSirs, the price of wire rod and rebar fell in October. By the end of the month, the average price of HRB400 rebar in Jiangsu, Zhejiang and Shanghai was 3,741.11 RMB/ton, down 7.01% from that of at the beginning of the month; the average price of HPB300 high line was 4,082 RMB/ton, down 3.22% from that of at the beginning of the month.

Analysis review

Inventory and output

According to the monitoring data of SunSirs, the output of wire rod and rebar increased in October, while the total inventory was at a low level.

Market:

From January to September, the construction area of real estate development enterprises was 8,789.19 million square meters, down 5.3% year on year. Among them, the residential construction area was 6,212.01 million square meters, down 5.4%. The newly started housing area was 947.67 million square meters, down 38.0%. Among them, the newly started residential area was 694.83 million square meters, down 38.7%. The completed housing area was 408.79 million square meters, down 19.9%. Among them, the completed residential area was 295.95 million square meters, down 19.6%.

Supply and demand

In October, weekly output rose and weekly inventory fell. In October, it was a traditional peak season, but the overall situation of wire rod and rebar was not prosperous. In the north, the market price was down, and steel mills were forced to follow suit; In the south, futures depressed morale and the price center moved downward. The price of upstream raw materials was weak, and steel mills were unable to support it; Demand was lower than expected, and business confidence was frustrated.

Market outlook

To sum up, demand was not improved, downstream funds were tight, cost support was weak, and demand was sluggish, leading to weak snail prices in October. The weather is cold in November. Gradually entering the off-season, the demand is difficult to improve, and the price of wire rod and rebar in November is expected to remain weak.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.