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Rebar prices continue to fall in China

Domestic steel prices in China experienced a slight decrease. The recovery in production and rising inventories, together with the weakness in surface demand, have led to weak steel industry data this week.

Rebar prices continue to fall in China

The spot price of rebar in Shanghai fell 10 yuan (1.40 USD), falling to 3,480 yuan (478 USD) per ton.

In the week of June 27, rebar production reached 2.44 million tons, with a monthly increase of 142,300 tons. On an annual basis, production decreased by 11.48%. Rebar demand was recorded as 2.358 million tons, with a monthly increase of 0.03 million tons, and an annual decrease of 7.8%.

Stocks in social warehouses increased by 51,500 tons monthly, reaching 5.78 million tons. In factory warehouses, there was 2.06 million tons of stock, with a monthly increase of 89,600 tons, and total stocks reached 7.84 million tons.

Recent heavy rains in the southern regions have made the weak demand in the local steel market even more evident, and this has significantly reduced steel shipments and prices. According to meteorological forecasts, it seems that heavy rains will continue in some regions in the south in the near future and off-season effects will increase. Rebar prices are expected to continue their volatile and weak course in the short term.

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