Recently, the price of rebar has oscillated between 3550-3680 yuan/ton, and has not been able to get out of the trend for three consecutive weeks. At present, long and short powers are intertwined, and raw material prices may continue to push up costs. However, when the national rainy season comes, the demand in East and South China will be suppressed. Although the current rebar inventory is still high, the inflection point has not yet appeared, and it will still further ease the pressure on steel.

Production growth slowed

Recently, the star varieties of the black industrial chain are undoubtedly coke and iron ore. On June 16, the market reported that Shandong will raise the ex-factory price of metallurgical coke by 50 yuan/ton, which is the sixth round of recent increase in coke; iron ore is in the Itabiya mine in Vale Suspended mining, coupled with strong domestic demand, continued to increase iron ore prices. As of the close of June 16, the main iron ore contract has increased by 161 yuan/ton from April 30, an increase of 26%, but correspondingly, the main rebar contract has only increased by 6.9% from May to the present , Obviously not as good as the raw material side.

Affected by this, both rebar production profit and disk profit fell. As of the close of June 16, the spot profit of rebar in East China was 113 yuan/ton, a decrease of 235 yuan/ton from the beginning of May; the rebar profit of the rebar narrowed to 34 yuan/ton, down 130 yuan/ton from the beginning of May. Although the production profit of rebar has decreased significantly from May to the present, it has been steadily boosted by the end demand and the overall output has increased steadily. As of the week of June 12, the rebar output of 35 cities nationwide was 3.8956 million tons, an increase of 31,600 tons from the previous month and an increase of 163,500 tons from the same period last year. At present, the historically high rebar output and the capacity utilization rate of up to 87.4% have limited the growth of rebar supply. At the same time, continuing to lower profits or further suppress the high supply of rebar.