The rebar market will shift into the off-season of demand, and steel prices will face periodic adjustments

"Entering June, the rebar market will continue to continue the'high supply, high demand, high inventory' operating trend since May. Considering the arrival of the rainy season and high temperature weather in the south, the rebar market may shift into the seasonal low season. The market is facing cyclical adjustment." On May 29, Liang Taigeng, general manager of Shanghai Hualei Enterprise Development Co., Ltd., said in an interview with a reporter from China Metallurgical.

From the perspective of supply, rebar output is expected to increase in June, but the increase is limited. Liang Taigeng said that at present, the profit of rebar in long-process steel mills reaches 200 yuan/ton to 300 yuan/ton, and short-roll steel mills also have a slight profit. Except that some steel mills in North China are affected by environmental protection, the steel mills are basically producing at full capacity.

From the perspective of demand, the demand for rebar is expected to increase in June. "At this year's National Two Sessions, we can easily find some information that is beneficial to the demand for steel." Liang Taigeng said, "This year's government work report proposes to expand effective investment; it is planned to arrange 3.75 trillion yuan for local government special bonds, an increase of 16,000 from last year RMB 100 million, increase the proportion of special bonds that can be used as project capital, and invest 600 billion yuan in the central budget; focus on supporting the "two new and one heavy" construction that not only promotes consumption, benefits people's livelihood, but also adjusts structure and growth. These positive measures The introduction of the new, to increase the demand for pulling rebar demand

force. "

Liang Taigeng said: "In May, due to factors such as the rush of major projects and conventional material preparation, rebar demand in May exceeded expectations, which can be said to be the best month for rebar demand since the beginning of this year. With the advent of high temperature weather, the demand for rebar in the southern region may be reduced, but it will not affect the overall demand for rebar in the country.