China's rebar output falls 12.5% on year in Jul'21
Production of rebars across China in July decreased by 12.5% on year to around 21 million tonnes, according to the latest statistics from the country’s National Bur...
Production of rebars across China in July decreased by 12.5% on year to around 21 million tonnes, according to the latest statistics from the country's National Bureau of Statistics (NBS) on August 19. This was the first time that domestic rebar output had posted negative on-year growth since March 2020.
The on-year decline in rebar output for July was mainly attributed to Beijing's call for lower steel output for 2021, Mysteel Global noted, as rebar is the most widely produced and consumed steel product in China.
Over January-July, China produced 157.5 million tonnes of rebar, or still up 7.2% on year or accounting for 19.5% of the country's total finished steel output of about 809 million tonnes during the same period. As for July alone, rebar accounted for 18.9% of the 111 million tonnes of finished steel output, according to NBS.
Also over January-July, China's fixed asset investment (FAI) grew by 10.3% on year to Yuan 30.3 trillion ($4.7 trillion). Funding in the property market increased faster by 12.7% on year to Yuan 8.5 trillion, while that for infrastructure rose by 4.6% on year, or 3.2 percentage points lower than the growth for H1, as reported.
Mysteel's survey among 237 steel trading houses nationwide showed that their daily trading volume of construction steel comprising rebar, wire rod and bar-in-coil averaged 187,418 tonnes/day in July, down 6,801 t/d or 3.5% on month, mainly dampened by the hot weather and heavy rainfalls in many regions.
Steelmaking costs such as iron ore saw significant declines last month as demand for them slackened. The Mysteel SEADEX 62% Australian Fines price, for example, had reached $180.2/dmt CFR Qingdao as of July 30, down $36.8/dmt on month.
On the other hand, China's spot finished steel prices were supported by lower steel output, Mysteel's assessment showed that the country's national price of HRB400E 20mm dia rebar had surged Yuan 540/tonne on month to Yuan 5,479/t including the 13% VAT by July 30.
Written by Rong Zhang, email@example.com
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.