Rebar produced during January-February accounted for 15% of China's total processed steel production. The utilization rate of rebar rolling capacity among 137 Chinese steel factories decreased to an average of 47.8%.
Regarding spot prices, as of February 29, the national price of HRB400E 20mm rebar, including 13% VAT, stood at 3,983 yuan/ton ($553/ton). This reflects a slight decrease compared to the end of last year, indicating a modest recovery in demand among construction contractors.
An survey conducted among 237 Chinese steel trading companies revealed a year-on-year decrease of 20.1% in the trading volume of rebar, rebar, and wire rods.
NBS statistics also showed a 29.7% decrease in newly initiated residential projects by floor area and a 20.5% decline in residential sales by floor area.
In conclusion, the decline in rebar production during the January-February period reflects weak demand in the construction sector and the decrease in raw material prices. Weakness in the real estate sector also adversely affects rebar production and steel consumption.
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