The short-term rebar market is still mainly weak and consolidating.
According to My Steel Network Based on the weekly output and inventory data of rebar released by My Steel Network, as of the week ending June 5, the national rebar output fell by 70,500 tons to 2.1846 million tons week-on-week, and decreased by 146,100 tons year-on-year; social inventories fell by 89,700 tons to 3.8562 million tons week-on-week, and decreased by 1.8513 million tons year-on-year; factory inventories fell by 16,000 tons to 1.8486 million tons week-on-week, and decreased by 199,900 tons year-on-year; apparent demand of rebar fell by 196,500 tons to 2.2903 million tons week-on-week, and decreased by 21,100 tons year-on-year. Rebar output continued to decline, the decline in inventory narrowed, and apparent demand fell. Considering the factor of one less working day this week, the data performance is neutral.
In terms of supply, steel mills are currently producing rebar The profit of rebar is relatively low. Steel mills give priority to producing plates and wire rods in terms of iron flow. In addition, some electric arc furnace enterprises have shortened their production time due to losses, and the output of rebar continues to decline. In terms of demand, the market is gradually entering the off-season, and overall demand has weakened. However, with prices stabilizing, some downstream users have increased inventory replenishment, and demand still has some resilience. The average daily transaction volume of construction materials nationwide from Tuesday to Wednesday this week was 110,400 tons, up 8.51% week-on-week. The average daily outbound volume of rebar in Hangzhou market was 39,500 tons, down 12.61% week-on-week. In Hangzhou market, rebar inventory dropped to 655,000 tons.
Currently, the supply and demand contradiction of rebar spot is not obvious, and some markets still have the phenomenon of shortage of specifications. However, the market has entered the off-season, and the market's expectation of future supply and demand is still weak. In addition, the United States has doubled the tariffs on imported steel from the current 25%, which has a certain impact on market sentiment. It is expected that the rebar futures market will mainly consolidate weakly in the short term.
