First, the southern rainy season ended, and the market demand for rebar was gradually strong. This year, the rainy season in the southern region lasted for a long time, the rainfall was large, and the rainfall was double that of previous years, which seriously affected the construction progress of the construction project and had a great impact on the demand of the rebar market. With the end of the rainy season in the southern region in the later period, the construction of various localities will resume normal construction, and the demand for rebar market will gradually return to normal. In late July, the actual outbound volume and transaction volume of rebar in all regions increased.

Second, there are more new projects in the real estate industry. Recently, the new construction area and the scale of construction in the real estate industry are still large, and investment in the real estate industry is still growing in some areas, and there are still many new projects. Recently, the demand for rebars with a diameter of 25 mm, a diameter of 28 mm and a diameter of 32 mm is on the rise; the amount of prefabricated parts and the amount of unloading of prefabricated construction projects are also rising, which is expected to further stimulate the demand for the later rebar market.

The third is the change in infrastructure investment and construction. Statistics show that in the first half of the year, the country issued a total of 2,766.5 billion new bonds, accounting for 70.7% of the newly added local government debt limit of 3,080 billion yuan in 2019. Among them, the scale of issuance in June reached 718 billion yuan, accounting for about one-third of the cumulative issuance in the first half of the year, setting a new record for a single month in the year. Later, the funds will be released in succession, which will alleviate the state of capital shortage in June and July, and accelerate the progress of infrastructure construction in various regions. This year, the National Development and Reform Commission approved nearly 40 infrastructure projects with a total investment of over 950 billion yuan. From the perspective of project types, most of them are concentrated in urban rail transit, airport expansion, railways, highways and other fields. For example, in the first half of the year, the Shanghai area has signed a total of 202 projects with a total investment of more than 190 billion yuan. In the second half of the year, 220 projects will be started, with a total investment of 200 billion yuan. With the large-scale construction of major infrastructure projects in various places and the timely release of funds, it is expected that there will be “starting tides” and “rushing tides” in August, which will drive the demand for the rebar market in the later period.