Price trend

According to the price monitoring of SunSirs, the price of the wire rod and rebar fluctuated within a narrow range in April. As of the end of the month, the average price of HRB400 rebar in Jiangsu, Zhejiang and Shanghai was 4,964.44 RMB/ton, down 1.67% from the beginning of the month; the average price of HPB300 wire rod was 5,180 RMB/ton, down 0.42% from the beginning of the month.

Analysis review

According to the data of SunSirs, in April, the weekly production and total inventory of wire rod and rebar were relatively high.

Market: Data from the National Bureau of Statistics shows that in the first three months of 2022, the sales and sales area of commercial housing were about 2.97 trillion RMB (RMB, the same below) and 310 million square meters, down 22.7% and 13.8% year-on-year. In terms of growth rate, the month-on-month growth rate of sales area and sales growth rate of commercial housing nationwide have both declined from the highs of January to March 2021, and the first three months of 2022 have narrowed by 4.2 percentage points and 3.4 percentage points compared with the first two months of 2022.

Supply and demand: The traffic control brought about by the epidemic this month had affected the transportation of scrap steel and iron-making raw materials, and steel mills had passively stopped and limited production. Inventories rose slightly. Affected by the epidemic, traffic was blocked, and steel mills were difficult to deliver goods. Under the epidemic control, actual supply and demand were still at a standstill.

Market outlook

To sum up, it is still in a state of closure and control, the demand performance is general, the downstream demand is still stagnant, and the terminal demand cannot be released. In the short term, the spiral market will still fluctuate within a narrow range.

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