High temperatures in August, can rebar surge again before the peak season?
Category: Company News
Aug 27,2021
Typhoon is approaching again, and high temperatures are also stirring. Why has rebar continued to rise sharply in early August? Can it maintain an upward trend in the middle to late August?
According to a reporter from the Futures Daily, most practitioners in the southern market have a positive outlook for August. The first reason is that downstream demand will gradually recover after the end of the plum rain season. At the same time, due to the longer duration of this year's plum rain, construction sites may concentrate on resuming work and catching up once the weather improves, leading to a significant release of terminal demand. The second reason is that the market generally has a positive outlook for the infrastructure industry in the second half of the year. As early as early July, the State Council's executive meeting studied and deployed key promotion of 150 major water conservancy projects from 2020 to 2022. In response to flooding in southern China, the country is strengthening construction of these 150 major water conservancy projects to enhance overall flood prevention capabilities, and it is expected that efforts and speed in advancing water conservancy projects will continue to increase. This contains huge demand potential. The third reason is that there is still resilience in the real estate industry, which will effectively play a supporting role as a demand side for construction steel.
"Currently, both supply and demand remain high; however, high temperatures in mid to late August may pose a risk for declining demand. Nevertheless, there is little risk of significant price declines. The market has high expectations for September and October; thus, rebar prices may react ahead of time. It is expected that overall prices will still maintain an oscillating trend with gradual increases throughout mid to late August," said an industry insider. (Source: Zhongzhou Network)
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