Weekly Report on Building Raw Material Prices

Last week, in terms of construction steel prices, the national average price of rebar was 3296 yuan/ton, with a month on month increase of 9 yuan/ton for the entire week. In terms of supply, the production of threaded steel was 1.9684 million tons last week, a decrease of 83200 tons compared to the previous week and 122200 tons compared to last year. The capacity utilization rate was 43.15%, a decrease of 1.82 percentage points compared to the previous week and a decrease of 2.68 percentage points compared to last year. In terms of inventory, the threaded steel mill's inventory decreased slightly last week, with a cumulative decrease of 17500 tons. From a regional perspective, the reduction is mainly concentrated in the southern and southwestern regions, with slight increases in inventory in the eastern, northeastern, and northwestern regions. In terms of mentality, although it is in the traditional off-season, due to the contraction of supply, the inventory of building materials in most regions of the country is showing a downward trend, and the fundamental performance is still acceptable. The market mentality is relatively optimistic. Overall, the slight increase in thread spot prices last week was mainly due to the support of costs and the remaining fundamental contradictions.

In summary, under the premise of limited national supply of construction steel, the overall pressure of supply is relatively weak, and the market digestion ability is strong. Looking ahead to this week, we will enter extreme and high temperature weather, with a weak balance sheet or further weakening, but cost support still exists, and the market pattern is a game of strength and weakness; Overall, merchants have a strong willingness to ship during the off-season, but the possibility of selling at low prices is relatively small. The overall price may be adjusted within a certain range. Overall, steel prices may continue to fluctuate within a certain range this week, and there is no significant fundamental pressure. Therefore, it is expected that the national construction steel prices will experience a slight adjustment this week.