en.Wedoany.com Reported - Last week, China's construction steel prices edged up, with the market showing resilience during the traditional off-season. The average price of rebar in China stood at 3,287 yuan/ton, up 7 yuan/ton from the previous week. Supply contracted, with rebar output at 2.0516 million tons, down 113,600 tons week-on-week and 115,000 tons year-on-year. Capacity utilization fell to 44.97%, down 2.50 percentage points week-on-week and 2.53 percentage points year-on-year. In terms of inventory, rebar mill stocks increased slightly by 14,200 tons, with notable gains in East and Southwest China, while declines were seen in South and North China. Market sentiment remained generally stable, with demand maintaining resilience amid the off-season and inventory accumulation slowing. Given limited supply pressure and strong cost support, China's construction steel prices are expected to continue fluctuating within a range this week, with a low likelihood of further declines.

Last week, the medium plate market remained stable overall, with China's average price at 3,499 yuan/ton and average transaction volumes. On the supply side, maintenance on some rolling lines led to a slight decline in medium plate operating rates and capacity utilization, but the reduction was limited, leaving the supply pattern loose. On the demand side, high temperatures, rainy weather, and a wait-and-see attitude weakened market circulation, with traders primarily focused on destocking to recover funds. In terms of inventory, contract resources arrived gradually, and slow destocking led to a rise in local stocks. Medium plate consumption last week was 1.6882 million tons, down 34,600 tons week-on-week. Market participants remain cautious about the outlook, and medium plate prices in China are expected to be weak and stable this week.

Last week, China's cement prices weakened. As of July 7, China's cement outbound volume was 2.1146 million tons, down 2.87% week-on-week and 22.42% year-on-year. Direct supply of cement for infrastructure was 1.48 million tons, down 1.99% week-on-week and 12.94% year-on-year. China's clinker line operating rate was approximately 51.29%, up 2.15 percentage points week-on-week; the clinker storage ratio was about 59.89%, up 0.81 percentage points week-on-week; and the cement storage ratio was 70.29%, up 1.42 percentage points week-on-week. Off-peak production continued across regions, but weak downstream demand kept inventory pressure high. The housing construction sector was hit hardest, infrastructure construction slowed, and the civil sector was dragged down by rainfall and a wait-and-see attitude, with demand weakening across all three segments. The market remains under pressure from the plum rain season in the short term, with price trends diverging across regions. Cement prices in China are expected to be stable to weak this week, with a potential recovery window after the plum rain season ends in mid-to-late July.

Last week, concrete prices weakened. As of July 7, the capacity utilization rate of 506 concrete mixing stations surveyed by Bainian Jianzhu was 5.72%, down 0.19 percentage points week-on-week; shipment volume was 1.1456 million cubic meters, down 3.24% week-on-week and 20.97% year-on-year. High temperatures and rainy weather led to staggered construction schedules, significantly slowing progress and reducing market demand. By region, shipment volume in East China fell 0.68% week-on-week; South China fell 3.18%, with typhoon weather expected to further impact the market; Central China fell 15.02%, with frequent high temperatures affecting construction; Southwest China fell 2.14%, with recent heavy rainfall; and North China fell 5.73%, constrained by rainfall, high temperatures, and environmental transport controls. With the plum rain season not yet over, the weak concrete market pattern remains unchanged, and the market is expected to continue weakening this week.

Last week, sand and gravel shipment volumes also declined. As of July 8, data from large sand and gravel mines and processing plants surveyed by Bainian Jianzhu showed total sand and gravel shipments of 14.507 million tons, down 4.45% week-on-week and 8.7% year-on-year. The production line operating rate was 50.47%, down 1.33 percentage points from the previous week. Sand and gravel capacity utilization was 32.38%, down 1.51 percentage points from the previous week. Shipment volumes are expected to remain weak and stable next week.

In terms of industry dynamics, last week, total supply of the five major steel products was 8.4703 million tons, down 171,300 tons week-on-week, with building material output declining while plate output rebounded slightly. Total inventory was 16.3392 million tons, up 0.7% week-on-week, with building materials accumulating 120,800 tons and plates destocking 12,100 tons, showing a divergence in consumption structure. Weekly consumption of the five major products was 8.3616 million tons, with building material consumption down 5.4% week-on-week and plate consumption up 1.8% week-on-week. As of July 7, the capital arrival rate at sample construction sites was 54.91%, down 0.10 percentage points week-on-week. Additionally, the Ministry of Water Resources issued a yellow flood warning. Due to future heavy rainfall, major rivers such as Taihu Lake, Jiaojiang River, Qingyi River, Shuiyang River, Chuhe River, Dongliao River, Liaohe River, Hunhe River, the Jilin section of the Songhua River, and the Lalin River may experience numbered floods, requiring attention to potential impacts on construction progress.