According to data from China's National Bureau of Statistics, China's rebar production in the first half of 2024 decreased by 11.7% on an annual basis to 102.4 million tons. This decrease marks a significant decline in the rebar sector, which constitutes 14.6% of the country's total finished steel product production.
On June, China's rebar production was recorded as 18.2 million tons, with a decrease of 10.1% on an annual basis. However, an increase of 1.4% was observed compared to May.
On the other hand, finished steel production across China increased by 3.2% in June compared to the previous year, reaching 125.5 million tons. This increase shows that the growth in China's overall steel production continues.
Market analysts state that the increase in rebar production in June was due to the fact that many Chinese steel mills maintained their production capacities at high levels. However, usage rates are still at low levels compared to the same period last year.
Economic indicators show that there was a decrease in spot rebar prices in June. For example, the national price of HRB400E 20 mm diameter rebar decreased by 204 Yuan/tonne (28.1 USD/t) per month to 3,626 Yuan/tonne (498 USD). Weakness on the demand side continues to keep prices under pressure.
China's rebar industry struggles with hot weather and incessant rains during the summer months. It is expected that weather conditions will continue to determine the course of steel consumption in the coming period.
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