1. Price Trend
According to SunSirs price monitoring, this week (05.11-05.15) rebar and wire rods remained stable. Today, the mainstream offer price of HRB400 rebar for major manufacturers is around 3490-3530 yuan / ton. The mainstream quotation of HRB300 wire rods of large factories is around 3580-3640 yuan / ton. On the whole, the prices of rebar and wire rod were basically the same as those of last Friday, and individual dealers' quotations were slightly lowered by about 10 yuan / ton.
2. Factors affecting price:
In terms of supply and demand, today the price of Tangshan Q325 general billet is raised by 10 yuan / ton, and the ex-factory price including tax is reported at 3170 yuan / ton. As of today, the total social stock of rebar is 12.8324 million tons, which is a decrease of 5.36% from last week by about 726.6 thousand tons, and the total social stock of wire rod is 12.83 million tons, which is about 720,000 tons from last week. According to statistics from the China Iron and Steel Industry Association, in early May 2020, key statistics on the production of crude steel by iron and steel enterprises totaled 20.516 million tons, an increase of 396,500 tons over the previous period. The average daily production of crude steel was 2.0517 million tons, an increase of 1.97% month-on-month and 0.28% year-on-year. Crude steel output continued to increase. At the same time, compared with the end of April, the destocking rate in early May slowed down significantly, and the output and inventory remained at High, it is expected that the supply pressure will increase further in the later period.
In terms of market, the prices of rebar and wire rods were basically consolidated this week, and prices did not fluctuate much. The market opened at the beginning of the week, and businesses tended to wait and see, and their mentality tended to be cautious. The spot price has been basically stable. Since Wednesday, due to the poor performance of the transaction, the dealers have mostly focused on the shipping mentality, and the price has loosened by 10 yuan / ton and has fallen slightly. Today, due to the weak operation of the rebar night market, the merchants' mentality became weaker. In the morning, they have lowered their quotations by about 10-20 yuan / ton. As the futures rebar fluctuated higher, merchants' mentality improved, and they stabilized after the callback in the afternoon. Today's low-level resource transactions performed well, and merchants' mentality was more positive.
In terms of futures, this week's main rebar futures oscillated weakly in 2010, and did not have much impact on the market from the disk. Today's main rebar futures oscillated higher in 2010, up 7 yuan / ton from the previous working day settlement price, and finally closed 3464 yuan / ton.
3. Market Forecast
Recent steel demand has recently rebounded, but the current production and inventory are at high levels, supply and demand pressure is still greater, but due to the strong willingness of steel mills to price, the price downward space is limited. Rebar and wire rod prices are expected to run weakly in the short term.
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