As the price of wire rods has a great impact on the price of screws, the trend of this price has always been every screw manufacturer and distributor’s major concern.
Compared with the year-ago level, the Steel Inventories at China’s two major steel trading hubs remain high. As the seasonal demand begins to vary, the stock levels are expected to trend upwards in the coming weeks, which are very likely to add pressure to Chinese steel prices.
In June of 2021, the long steel inventories, comprising rebar and wire rod, in southern Guangzhou, were almost at the same level as of June 2019. On the same day, long steel inventories, comprising mainly rebar and wire rod, in southern Guangzhou, were almost at the same level as early June 2019. Meanwhile, as an indicator of the flat steel market, the inventories of hot-rolled coil increased by 27% in eastern Shanghai compared with the levels in early June 2019.
Some experts predict that the transactions in steel spot markets might slow down in general. This is partly due to the rainy season in China, partly due to the expectation of strong steel production, which will weigh on the steel prices in June and July.
The following chart shows the FOB price of Wire Rod Q195 6.5mm in China during the last week (in US Dollars):
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