Price trend

On November 25, the price of national rebar continued to increase slightly. The factory price of steel plant was increased by 20-80 RMB/ton, and the mainstream price of rebar of large plant was increased by 4120-4200 RMB/ton. During the weekend, the mainstream of Tangshan billet quotation was flat, most of the merchants held a wait-and-see attitude, and the quotation fluctuation was not large; the downstream demand enthusiasm decreased, and the transaction performance was general compared with last week.

Analysis review        

In terms of supply, Tangshan general steel billets rose 30 RMB in total, including tax price of 3480 RMB/ton. The trend of black series was strong. As of November 22, the total social inventory of rebarl in China was 4.526 million tons, 9.28% less than that of last week, about 434900 tons. The de stocking of rebar was further accelerated, and the inventory reached a low point.

In terms of futures, today's turbulence rose, and the main rebar contract 2001 increased by 55 RMB/ton from the settlement price of the previous trading day, closing at 3697 RMB/ton.

In terms of market, as the weather gradually turns cool, the terminal demand may gradually decrease, and with the arrival of steel resources in succession this week, the situation of specification shortage will be improved. In the morning today, the merchants are more cautious and wait-and-see with stable price. As the spiral rises in the mid-term of the dish, the merchants' mood improves, and the delivery price is increased by 30-50 RMB/ton.

Market outlook

On the whole, the arrival of resources properly alleviates the downstream demand, and the situation of crazy price rise may be curbed, but the rise of futures will not only drive the high spot price, but also the strong rise of black series. It is expected that the rebar price will be consolidated and operated in the short term.

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