SunSirs: Affected by Rumors of Production Restrictions, Rebar and Wire Rod Prices Slightly Increased This Week (June 5-9)
June 13 2023 10:11:59 SunSirs (John)
Price trend
According to the price monitoring of SunSirs, as of June 9th, the prices of rebar and wire rods in the Jiangsu, Zhejiang and Shanghai regions fell first and then rose this week. As of the 9th, the average price of HRB400 rebar in the Jiangsu, Zhejiang and Shanghai regions was about 3,666.67 RMB/ton, an increase of 0.67% compared to the beginning of the week; The average high line price of HPB300 in the Jiangsu, Zhejiang and Shanghai regions was 3,902 RMB/ton, an increase of 0.41% compared to the beginning of the week.
Market aspect:
As the weekend approached, the national engineering demand was 39239 tons, an increase of 55.1% compared to the previous trading day and a decrease of 62.5% 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 and total inventory of rebar and wire rods decreased.
On the upstream side, the coke market operated smoothly; Port iron ore continued to be stronger; The scrap steel market was weak and stable, with some northern regions experiencing a slight decline. Last weekend, stimulated by rumors of production restrictions, the factory price of plain carbon steel billets in Tangshan, Hebei Province was increased by a total of 110 RMB to 3,500 RMB/ton, with a weekly increase of 200 RMB/ton. Stimulated by positive news, the price of rebar significantly increased. However, after the increase, market transactions were not followed up, and the price rebound was hindered.
Market outlook
As the weekend approached, there might be a certain demand for stocking at the terminal. It is expected that in the short term, the price of rebar and wire rod will mainly fluctuate stronger.
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