The article discusses the ongoing pressure in the Shanghai steel market, with the main rebar contract RB1310 continuing its downward trend for two consecutive weeks. The price center has shifted lower, showing a weak market sentiment. Last week, the opening price was 3,391 yuan/ton, peaking at 3,442 yuan/ton and closing at 3,424 yuan/ton, representing a 0.44% increase from the previous week. The trading volume dropped by 7.3%, while open interest slightly decreased by 0.9%.
On the industry data front, China’s total import and export value from January to May reached 10.51 trillion yuan (about $167.62 billion), up 10.9% year-on-year after adjusting for exchange rate fluctuations. Exports rose 13.5% to 5.51 trillion yuan ($878.56 billion), while imports increased 8.2% to 5 trillion yuan ($797.69 billion). The trade surplus stood at 507.94 billion yuan ($80.87 billion). In May alone, total trade reached 2.15 trillion yuan ($345.11 billion), with exports up 1% and imports down 0.3%, resulting in a trade surplus of 127.84 billion yuan ($20.43 billion).
Inflation data showed that the national consumer price index (CPI) rose 2.1% year-on-year in May, with an average of 2.4% from January to May. The producer price index (PPI) fell 2.9% year-on-year in May, marking a 0.6% monthly decline. Industrial production growth slowed slightly, with the added value of large-scale industrial enterprises increasing by 9.2% year-on-year, down 0.1 percentage points from April.
Fixed asset investment grew 20.4% year-on-year from January to May, slightly lower than the previous four months. Real estate development investment reached 2.6798 trillion yuan, up 20.6% year-on-year, but the growth rate declined compared to the first four months. New housing starts rose 1.0%, while land acquisition fell 13.1%, reflecting a continued slowdown in real estate activity.
Steel production in China from January to May totaled 4,261.6 million tons, up 10.8% year-on-year. In May alone, output reached 99.19 million tons, a 11.3% increase from the same period last year. Daily steel output averaged 2.942 million tons, setting a new record high.
China’s steel imports in May were 1.25 million tons, down 21,000 tons from the previous period, while exports reached 5.41 million tons, up 204,000 tons year-on-year. Steel billet imports remained at 50,000 tons, with zero exports. Net crude steel exports totaled 4.376 million tons, down 144,000 tons from the previous period.
In the spot market, the Myspic Composite Index started the week higher but ended lower at 127.26, down 0.40% from the previous week. Prices initially rebounded due to improved sentiment, but the weak futures market led to limited gains. After the Dragon Boat Festival, prices continued to fall, with lighter trading volumes and a bearish outlook.
Rebar inventory in major cities stood at 7.84 million tons, down 0.77% from the previous week, though still 10.66% higher than the same period last year. Domestic iron ore prices remained stable, with steady import volumes. Some steel mills made small purchases due to strong demand and low import prices, while most businesses remained cautious.
Looking ahead, this week's market is expected to remain bearish following the holiday break. With limited inventory and some areas offering slightly lower prices, traders are watching the 3,400 yuan/ton level as a key support. If it breaks, further downside may follow.
Dc Fan,Crown Dc Cooling Fans,Crown Dc Cross Flow Fan,Office Dc Cooling Fans
Crown Electronics CO., LTD , https://www.crownhaero.com