In the January-June period this year, China’s rebar production totaled 102.353 million mt, down 11.7 percent year on year, according to China’s National Bureau of Statistics (NBS).
In the given period, domestic wire rod production amounted to 67.343 million mt, declining by 2.8 percent year on year, while welded pipe output came to 28.51 million mt, down 8.3 percent year on year.
In June alone, China’s rebar, wire rod and welded pipe outputs amounted to 18.24 million mt, 12.467 million mt and 5.367 million mt, down 10.1 percent, up 2.4 percent and down 11.9 percent year on year, respectively.
In June, rebar prices in the Chinese domestic market saw an overall downtrend amid the slack demand from downstream users due to floods and hot weather conditions. Rebar prices reached a peak in June at RMB 3,750/mt on June 1-2, while they saw their lowest level during the month on June 25 at RMB 3,563/mt, according to SteelOrbis’ data.
Since the hot weather has continued in July, demand for steel is anticipated to be sluggish, which will exert a negative impact on prices. It is thought that rebar and wire rod prices may fluctuate within a limited range at relatively low levels in July.
