From January to April this year, China's total rebar production reached 66.306 million tons, down 12.8 percent year on year, according to the National Bureau of Statistics of China.
In the same period, the production of domestic wire rods reached 42.883 million tons, a decrease of 7.1% year-on-year, while the production of welded pipes reached 17.245 million tons, a decrease of 5.3% year-on-year.
In April alone, the production of rebar reached 16.343 million tons, down 21.7%. Wire, 10.753 million tons, down 11.4%, and welded pipes, 5.421 million tons, down 1.2% year-on-year. In April, rebar prices indicated a general upward trend amid improvement. Demand from steel consumers.
Rebar prices reached their April peak of CNY 3,767/ton on April 25, while indicating their lowest level for the month on April 1 at CNY 3,523/ton.
The market situation improved in April, with rebar stocks being consumed at a decent speed, which strongly boosted prices. Before the Labor Day holiday (May 1-5), steel consumers were expected to increase rebar inventories, which positively impacted rebar prices.
In May, demand was not good, which led to a drop in rebar prices. However, China's issuance of stimulus policies for the real estate sector and long-term sovereign bonds has strengthened the market situation since mid-May, which has had a positive impact on rebar prices.