Rebar futures hit 9-month lows

The "cold" steel industry did not disperse in the summer sunshine. Last week, the rebar main contract fell sharply by 4.34%, hit the lowest point of 9116 months since the 3416 yuan / ton, holding positions reached a record high of 2.477 million hands. On June 3, Rb1310 closed at 4,483 yuan/ton, a slight increase of 1.52%.

The declining trend of this round of rebar began after the Spring Festival this year, and the rebar futures price fell from a high of 4,300 yuan/ton to 3,400 yuan/ton, a drop of 20.93%.

Affected by the fall in rebar price, the price of imported iron ore also showed a trend of dive. On May 30, the Platts index fell to US$111.5/ton, a new low after the year. However, the China Steel Association recently announced that the national crude steel production in mid-May is estimated to be 2,185,400 tons, still at a relatively high level, to a certain extent, supporting the price of imported iron ore.

The spot transaction of rebar is still relatively low, and the price of Beijing's tertiary rebar has dropped by RMB 50/t from the previous week, and the price of rebar in Shanghai has dropped by RMB 130/t. "Because of the impact of early steel trade loans, traders have a low inventory, but the willingness to purchase will be low and steelmakers will be under pressure to ship." Nanhua analyst Jiang Hang believes that as the cost of steel falls and steel mills The backlog of inventory, the future steel prices will continue to operate weakly.

According to statistics from the China Iron and Steel Association, in May 2013, the social inventory of all five major steel products in 22 cities fell, with a significant decrease in wire and rebar inventory. Galaxy analyst Zhang Yuan believes that in the corporate labor, environmental protection costs continue to increase, the spot market transactions continue to decline in the case of the future for some time the steel industry will continue to be at the edge of a loss.

“In recent days, the first-tier cities to refresh their land prices will prompt the implementation of real estate tax pilots. As a result, the steel industry will continue to face long-term pressure.” Zhang Yuan said that due to the current macroeconomic no obvious warming, raw material prices "And the traditional steel season is coming to an end, and short-term rebar prices may continue to maintain a downward trend."