The production of rebar this week increased slightly from last week, but from the same month-on-month data, the current production of rebar is still at a relatively low level. Judging from the current production status of the company, the core reason for the company’s production reduction is still production restriction and floating loss. It has entered the heating season and the Winter Olympics production restriction. There are production reduction/stopping plans in various parts of the north, although production restrictions are affected in East China and South. It is lower than that in the north, but near the end of the year, seasonal supply shrinkage will still be heard, mainly in electric arc furnaces and billet craft companies. On the whole, the current production enthusiasm of enterprises is not high, the overall output changes are not large, and the overall operation continues at a low level.
The demand this week has not changed significantly from last week, and the current demand characteristics are still relatively strong in the south and weak in the north. As the temperature gradually decreases, the contribution of the northern demand will gradually decrease, so the subsequent demand pressure on the south Will gradually increase. From a macro perspective, there have been more and more signals about the relaxation of real estate funds recently, and the market’s pessimistic expectations for real estate have eased. However, the country currently insists on “housing and not speculating”, so real estate is unlikely to show a more obvious trend of recovery. Short-term demand may maintain the current state.
This week, market prices stopped falling and rebounded, and merchants’ pessimism about the future market has been restored to a certain extent. However, the current weak supply and demand pattern is still maintained, regardless of the macro or the fundamentals of supply and demand, there is no absolutely good news to reverse the current bearish sentiment. In addition, due to the rapid and sharp drop in prices in the previous period, the merchants suffered significant losses. Therefore, the current merchants generally adopt a cautious attitude toward the market outlook, and maintain the main operation to reduce the inventory and reduce the risk.
Post time: Nov-29-2021