Haihao Group shares with you the market analysis of construction steel raw materials

Last week (June 17 – June 21), the overall price of domestic construction steel market showed a downward trend. Industry data showed that the average price of rebar fell by 52 yuan/ton week-on-week. According to a merchant engaged in construction steel trade, as the market gradually enters the off-season and the weather factors affect the steel sales pressure, traders tend to ship at low prices.

HAIHAO GROUP

Supply analysis

Output:

The total output of construction steel reached 3.2515 million tons, a weekly increase of 0.27%, showing a slight recovery.

The output of rebar continued to decline, with a reduction of 18,800 tons, mainly concentrated in east China and northwest China. Due to the high pressure of steel inventory and low prices in northwest China, steel mills have increased their own production cuts; steel mills in East China have continued to decline due to maintenance.

The output of wire rods and wire rods has turned from decline to increase, with an increase of 27,600 tons, mainly from northeast China and north China. Steel mills in Heilongjiang and Shanxi provinces resumed production of production lines that had been overhauled in the early stage, and the supply increased by 23,100 tons.

Prefabricated Pipes

Demand analysis

The demand for construction steel has declined significantly recently. The national construction steel transaction volume fell by 10% week-on-week.

High temperatures in the north and heavy rains in the south restricted construction in many places, especially outdoor work, resulting in a significant decline in demand.

As of June 18, the capital availability rate of construction sites was 63.64%, a week-on-week decrease of 0.11 percentage points. In may, the core indicators of real estate basically showed a downward trend, and the real estate data did not show significant improvement. The weak demand for steel is difficult to change in the short term.

Inventory analysis

According to data from mysteel.com, the social inventory of construction steel was 6.5658 million tons, a week-on-week increase of 0.41%.

Rebar inventory shows regional differences:

Inventory in the northern region fell by 11,400 tons week-on-week.

Inventory in the southern region increased by 47,600 tons week-on-week.

Except for central China, south China and north China, rebar inventory in other regions showed a downward trend.

The inventory of rebar in northeast and southwest China has declined rapidly, while that in east China and northwest China has declined slowly, and the inventory in other regions has begun to increase. However, the inventory of rebar mills has declined faster, pushing the overall rebar inventory into a downward range.

The current domestic construction steel market presents a “weak supply and demand” pattern, and market participants generally expect that the price of construction steel will remain weak in the short term. As an expert in the field of pipeline systems, Haihao Group closely monitors the changes in the raw material market and shares them with customers in a timely manner so that customers can make the best decision. If your pipeline system engineering project requires related products, please feel free to contact us.