Rebar decline slows down iron ore

The rebar prices of the last period of November 22 continued to fall, the decline slowed down, and imported iron ore dropped and fell, and steel mills' replenishment stocks tended to end. With weaker demand, rebar will continue to be low.

22nd rebar ** main 1205 contract closed down 0.12% to close at 4,089 yuan / ton, intraday trend sideways.

On the 22nd, domestic iron ore was mainly stabilized, with individual regions falling slightly and rising by RMB 10/t. The market is expected to wait and see. 63.5% of the Indian iron ore sand plate outside the price of 152-154 US dollars / ton, down 1 US dollars / ton.

In terms of spot, rebar market prices generally declined slightly on the morning of the 22nd. The average price of HRB400 20MM in the country's major 25 cities fell by 8 yuan/ton to 4588 yuan/ton, and dropped by 3 yuan/ton in the previous trading day.

It is reported that at present most iron ore stocks of steel mills have reached normal levels, the procurement wave of steel mills has tended to decline, and iron ore spot market inquiries have decreased. However, after the iron ore price stopped falling this time, there would not be any large downside. Instead, it would enter a narrow adjustment pattern.

Since November, the continued rebound in imported iron ore prices has given a lot of support to the stabilization of rebar, and the current price increase has also sent signals to the market that this round of iron ore rebound is declining, due to the expansion of foreign mine production capacity after big expansion. The supply and demand pattern of iron ore will be subverted. This view has been supporting the long-term bearish expectations of iron ore prices. It is reported that at the beginning of November, the operating rate of rebar producers was still as high as 84.4%. Therefore, under the current situation that steel demand continues to weaken, rebar prices are still difficult to achieve upward momentum after the tumbling adjustment in November and will continue. Adjustment.