China's rebar production decreased by 13.4% in January-July

The production of rebar, an important construction material in China, saw a significant decline in the first seven months of the year. According to the National Bureau of Statistics (NBS), rebar production fell 13.4% y-o-y to 117.2 million tons at the end of July. July alone recorded a production of 5.6 million tons, down by 21.6% compared to the same month last year and 14.2% compared to June.

The drop in production was largely attributed to lower rebar sales and weak demand, which led more Chinese steel mills to reduce their operations or stop production altogether for maintenance.

In July, the average loss incurred by blast furnace producers nationwide on rebar sales rose to 249 Yuan (USD 34.9), an increase of 151 Yuan per ton compared to the previous month. This loss was largely due to the sharp drop in spot rebar prices.

As of July 31, the domestic market price of HRB400E 20mm diameter rebar HRB400E, a key indicator of local steel market trends, fell by 245 Yuan per ton from a month earlier to 3,381 Yuan (474 USD) per ton including 13% VAT.

Domestic long steel demand was lackluster in July when steel consumption is typically low due to extreme heat and frequent rains. Trading volumes for rebar, wire rod, and bar-in-coil coil averaged 116,495 tons.