Currently, both supply and demand for threads are weak, and it is expected that the market will mainly experience fluctuations and consolidation in the short term.
My Steel NetworkOn January 16, the weekly production and inventory data for rebar was released. The rebar production decreased by 61,200 tons month-on-month to 1,932,900 tons, a year-on-year decrease of 408,800 tons in the Gregorian calendar and a decrease of 224,100 tons in the lunar calendar; social inventory increased by 83,100 tons month-on-month to 3,006,200 tons, a year-on-year decrease of 1,696,000 tons in the Gregorian calendar and a decrease of 2,772,400 tons in the lunar calendar; factory inventory decreased by 1,700 tons month-on-month to 1,253,700 tons, a year-on-year decrease of 535,300 tons in the Gregorian calendar and a decrease of 713,000 tons in the lunar calendar. This week, the rebar market demand decreased by 49,000 tons month-on-month to 1,851,500 tons, a year-on-year decrease of 324,000 tons in the Gregorian calendar and an increase of 532,900 tons in the lunar calendar.
"Rebar weekly production has declined for the fourth consecutive week, inventory has accumulated for the third consecutive week, and market demand has fallen for the fourth consecutive week, with data showing a neutral performance," said Qiu Yuecheng, director of black research at Everbright Futures. In terms of supply, as the Spring Festival approaches, seasonal production cuts and maintenance at steel mills have increased, and more electric arc steel mills are also on holiday.RebarProduction continues to decline. In terms of demand, the demand in northern regions has completely stagnated, and projects in southern regions are gradually coming to an end, leading to a continued decline in overall demand. From Monday to Wednesday this week, the average daily transaction volume of construction materials monitored by My Steel was 78,000 tons, a month-on-month decline of 8.38%; the average daily outflow of rebar in the Hangzhou market was 31,900 tons, a month-on-month decline of 21.1%. In the Hangzhou market.Rebar inventoryincreased to 454,000 tons.
Qiu Yuecheng stated that currently, rebar shows a clear weakness in both supply and demand, with inventory accumulating, but overall inventory is significantly lower than the same period last year, maintaining a tight balance in the supply and demand of the industrial chain. This year, traders' enthusiasm for winter storage is relatively low, and the willingness of the industry to hold goods is not strong, which has suppressed valuations to some extent. It is expected that in the short term, the rebar market will mainly experience fluctuations and adjustments.
