SunSirs: Insufficient Demand, the Peak Season of the Wire Rod and Rebar Market in April Was Not Strong
April 28 2023 10:37:09 SunSirs (John)
Price trend
According to the price monitoring of SunSirs, in April, the price of wire rod and rebar fluctuated and fell, making it relatively weak. As of the end of the month, the average price of HRB400 rebar in the Jiangsu, Zhejiang and Shanghai region was 3,783.33 RMB/ton, a decrease of 10.13% compared to the beginning of the month; the average high line price of HPB300 in the Jiangsu, Zhejiang and Shanghai region was 3,980 RMB/ton, a decrease of 9.91% compared to the beginning of the month.
Analysis review
In April, there was a slight decrease in weekly production and inventory of wire rod and rebar.
In terms of market, from January to March, real estate development enterprises received 3,470.8 billion RMB in funds, a year-on-year decrease of 9.0%. Among them, domestic loans amounted to 499.5 billion RMB, a decrease of 9.6%; Utilizing foreign investment of 800 million RMB, a decrease of 22.7%; Self raised funds of 1,017.1 billion RMB, a decrease of 17.9%; Deposit and advance payment of 1,190.9 billion RMB, a decrease of 2.8%; Personal mortgage loans amounted to 618.8 billion RMB, a decrease of 2.9%.
In terms of supply and demand: On the upstream side, the coke market experienced four rounds of price reductions in April, with a cumulative price reduction of 300-400 RMB/ton. After four rounds of price reductions, the market still operated weakly. In April, the prices of iron ore and scrap steel at the port showed a downward trend, consistent with the trend of wire rod and rebar. In early April, the rainy weather in East China was concentrated, and the construction progress on the construction site was slow, which dampened market confidence. In mid April, some steel mills began to undergo maintenance and production reduction, and the amount of resources invested decreased. Merchants' inventory pressure was not high, and the prices of wire rod and rebar were partially firm. The transaction performance of wire rod and rebar in April remained weak, with low enthusiasm for terminal procurement and weak demand.
Market outlook
In summary, in April, the peak season was not strong, and the demand for wire rod and rebar remained relatively weak. The weather was rainy and the temperature was variable, and the construction progress on the construction site was slow. Some steel mills underwent maintenance, which provided some support for the price of wire rod and rebar. The real estate market experienced a slight rebound in April, but the new news of unifying the real estate certificate will undoubtedly hit the real estate market again. It is expected that the price of wire rod and rebar will remain weak in May.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.
