The recent rally in Shanghai rebar prices has fizzled out, falling short of market expectations. As of the close on July 30, the main contract for rebar closed at 3,633 yuan per ton, down by nearly 200,000 lots, with a total of 14.12 million contracts traded. Market sources suggest that tight bank credit and high debt ratios have placed a heavy burden on the iron and steel industry, leading to a sharp decline in trading volumes. Analysts believe that capital inflows are likely to continue suppressing any further price recovery.
Bullish momentum has been under pressure since the Spring Festival this year, as weak macroeconomic conditions and supply-demand imbalances caused a sharp drop in rebar prices. From February through May, prices fell for four consecutive months, dropping from 4,241 yuan per ton in February to a low of 3,391 yuan per ton in June—a decrease of over 20%.
However, a rebound began at the end of June. Between June 26 and July 19, the main rebar contract price rose from 3,442 yuan per ton to 3,712 yuan, while turnover increased from 1.408 million to 22.10 million lots. Positions also rose from 787,000 to 1.344 million lots, an increase of 70.7%. On July 11, the transaction volume of the main rebar contract hit 4.5 million lots, but then dropped to 12.79 million by July 30, a fall of over 71.6%. Other contracts did not see similar growth.
“This is directly due to funds exiting the market during the period,†analysts said. The current market is in a phase of adjustment, and miscalculations in market positioning have led to losses. Capital is even scarcer now.
The “funding up†trend has also impacted the steel industry, which is a capital-intensive sector. Due to poor performance in recent years, both producers and traders have struggled, leading to frequent cases of traders and private business owners “running away.†Additionally, with tight capital chains, many traders have collapsed, and banks have taken legal action against them, making the steel industry increasingly difficult to manage.
According to market analysts, with the overall high debt ratio and shrinking profit margins in the steel industry, it's becoming harder for steel companies, especially smaller ones, to secure loans from banks. Han Jing, a researcher at Greene, noted that although the central bank’s announcement on July 21 about fully liberalizing interest rate controls was expected to reduce costs for physical enterprises, its positive impact on the steel industry has been limited.
On the flip side, Jin Rui analyst Zhou Ting believes that if we focus only on the breakdown of the capital chain in steel companies, it could help the industry eliminate weaker players and promote deleveraging in the domestic steel market. From another perspective, financial conditions influence asset demand. When capital is abundant, it can support higher prices. Conversely, when capital is tight, it weighs on prices.
Looking ahead, the second half of the year has seen a suppressed rebound in steel prices, with spot market performance remaining weak. Zhou Ting pointed out that willingness to accept high prices has declined significantly, showing that demand-side participants are more cautious about future prospects. While the “Golden 9 Silver 10†season may boost spot demand, slowing economic growth and mild stimulus policies mean there shouldn’t be too much optimism about terminal demand.
He added that the recent price rebound was mainly driven by supply-side production cuts. This effect is expected to continue in the short term. In the medium to long term, if capacity reductions and structural upgrades in the domestic steel industry continue, they could reverse the supply-demand structure of the entire market.
Eliminating outdated production capacity might be painful, but it could be good news for the steel market in the long run. While the intention to remove inefficient production is positive, the steel industry remains a key pillar in local economies, providing employment and tax revenue. Therefore, the implementation of such policies may not yield immediate results.The price of steel structure building is favorable, and the safety is guaranteed!
In recent years, steel structure buildings are still very popular, and can be divided into Industrial Steel Buildings and Agricultural Steel Buildings. Industry is mostly used for Steel Structure Workshop Warehouse, and agriculture is mostly used for cowsheds and stables.
Moreover, the construction efficiency of this type of building is high, and different designs can also be carried out, so as long as it can cooperate with regular manufacturers, customized processing buildings are also guaranteed. And from the price point of view, its cost performance is high, and the safety is also guaranteed.
sturdiness
Many people may worry that steel structure buildings are not as strong as traditional buildings, but this is not the case. Because it is made of heavy-duty steel, it has a strong load-bearing capacity and its stability is also guaranteed. It can withstand typhoons, earthquakes, etc., and its steel properties are unique, so it is also guaranteed to be used in harsh environments.
fire effect
Because steel itself is a non-combustible material, and the outer layer has fire-resistant coating and anti-rust coating, and many buildings directly use sandwich panels, so its fire-proof, moisture-proof, and sound-proof effects are also good. of.
waterproof and insect-proof
Steel structure buildings can be effectively waterproof, and the surface of the steel is also galvanized, so the corrosion resistance is also guaranteed. And it also has a good insect-proof effect, so you don't have to worry about being eaten by insects later.
long-term use
Such buildings can be used for a long time, but it is also important to choose light decoration for the interior as much as possible to reduce the overall load bearing of the building. Moreover, the hardness of steel is strong, and it is not easy to deform. It has a long service life and is also good in terms of cost performance.
Environmental performance
In fact, all materials of the steel structure can be recycled and reused, which can reduce the waste of energy and also avoid the generation of construction waste. Therefore, relatively speaking, this kind of building has strong environmental protection performance, and this kind of building will be chosen on many construction sites.
And now many manufacturers can also provide customized processing services, so that it is convenient to customize steel structure buildings, and fast construction can be completed in a short period of time, so that construction costs can also be saved a lot. Therefore, from the perspective of long-term use and cost performance, such buildings are indeed worth choosing.
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Henan Jinming Metal Material Co., Ltd. , https://www.jinminghouse.com