In the January-April period this year, China’s rebar production totaled 66.306 million mt, down 12.8 percent year on year, according to China’s National Bureau of Statistics (NBS).
In the given period, domestic wire rod production amounted to 42.883 million mt, declining by 7.1 percent year on year, while welded pipe output came to 17.245 million mt, down 5.3 percent year on year.
In April alone, China’s rebar, wire rod and welded pipe outputs amounted to 16.343 million mt, 10.753 million mt and 5.421 million mt, down 21.7 percent, 11.4 percent and 1.2 percent year on year, respectively.
In April, rebar prices indicated an overall uptrend amid the improved demand from downstream users. Rebar prices reached a peak in April at RMB 3,767/mt on April 25, while they indicated their lowest level during the month on April 1 at RMB 3,523/mt, according to SteelOrbis’ data. Market sentiments improved in April, with inventory of rebar being consumed at a decent speed, bolstering prices firmly. Ahead of the Labor Day holiday (May 1-5), downstream users were expected to build up stocks, which positively affected rebar prices. In May, demand has not been as good as market players had expected, weakening the support for rebar prices. However, China’s issuance of stimulus policies for the real estate sector and of ultra-long sovereign bonds has boosted market sentiments from mid-May, which exerted a positive impact on rebar prices.