Yesterday, rebar prices fell sharply, and trading continued to be sluggish. Looking at different regions, HBIS's quotation in Beijing was 3,840 yuan/mt, which fell downward. However, traders did not lower the price as the holiday approached, and downstream procurement was almost suspended: Hangzhou Zhongtian's quotation was 3,970 yuan/mt, down 20 yuan/mt. The market prices fell, the spot market quotations have loosened, and some traders followed the decline, but the downstream basically stopped production and there were very few transactions. The quotation of Echeng Steel was 4,040 yuan/mt, down 10 yuan/mt. Most merchants have stopped selling and are preparing for the holidays. There were very few transactions as demand stagnated.
Rebar prices continued to fall, down 1.95%, falling below 3,900 and closing at 3,869. Spot prices stabilized or fell slightly, with prices in some areas still falling by 10-30 yuan/mt. The PMI data released today was below 50% and failed to exceed market expectations, coupled with the decline in raw materials, dragging down rebar prices again.
Looking ahead, most EF steel mills have shut down, and traders and downstream construction sites have also taken CNY holidays. The weak supply and demand pattern of building materials may continue until before the holiday. In terms of inventory, the last two weeks before the holiday are a period of rapid inventory accumulation. It is expected that the trend of substantial inventory accumulation will continue this week. The Federal Reserve interest rate meeting may have an impact on the market. It is recommended to eyes on. Generally speaking, steel prices are expected to be volatile before the CNY holiday.
