SunSirs: This Week, the Price of Wire Rod and Rebar Dropped Significantly (May 22-26)
May 29 2023 14:14:12 SunSirs (John)
Price trend
According to the price monitoring of SunSirs, as of May 26th, the prices of wire rod and rebar in the Jiangsu, Zhejiang and Shanghai regions had significantly decreased this week. As of the 26th, the average price of HRB400 rebar in the Jiangsu, Zhejiang and Shanghai regions was about 3,461.11 RMB/ton, a decrease of 4.83% compared to the beginning of the week; the average price of HPB300 wire rod in the Jiangsu, Zhejiang and Shanghai regions was 3,700 RMB/ton, a decrease of 4.19% compared to the beginning of the week.
Analysis review
Market aspect: As the weekend approached, the national engineering demand was 88,556 tons, a 32.9% increase compared to the previous trading day and a 36.9% increase compared to the same period last week. From January to April, the national investment in real estate development reached 3,551.4 billion RMB, a year-on-year decrease of 6.2% (calculated according to comparable standards); Among them, residential investment reached 2,707.2 billion RMB, a decrease of 4.9%. From January to April, the construction area of real estate development enterprises' houses was 7,712.71 million square meters, a year-on-year decrease of 5.6%. Among them, the residential construction area was 5,429.68 million square meters, a decrease of 5.9%. The newly constructed area of houses was 312.2 million square meters, a decrease of 21.2%.
Inventory and Production: This week, the weekly production of wire rod and rebar increased and the total inventory decreased. The weekly production and total inventory of wire rods decreased. On the upstream side, the coke market maintained weak and stable operation; Port iron ore continued to be weak; The decline in the scrap steel market had increased. As of 26th, the release of demand was weak, and the prices of raw materials had not yet stopped falling. Market confidence was seriously insufficient, and as futures prices continued to decline, spot prices were following the trend.
Market outlook
As the weekend approached, there may be a certain increase in terminal stocking demand, but after a significant decline in the early stages, there is limited room for decline in the short term. It is expected that the wire rod and rebar price will continue to fluctuate at a low level in the short term.
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