Grade II rebar accelerates delisting

Recently, Grade II rebar on a number of steel markets in Xi’an has been scrutinized by local industrial and commercial bureaus. "The Grade II rebar cannot be sold, and the Trade and Industry Bureau will be fined once it is met," said Li Hui, manager of Shaanxi Tonghui Metal Materials Co., Ltd.

The price difference is small, accelerating the retreat of Class II rebar. “In the past, Class II rebar was more than 100 yuan cheaper than Class III rebar per ton. Now, Class II rebar on the market is almost a price for Class III rebar, and it is no longer in the market. With advantages, Grade III rebar has high strength, good toughness, excellent welding performance and seismic performance compared with Grade II rebar, and it can also save more than 12% of steel materials, and users certainly choose to buy Grade III rebar." Manager Lee said. According to the survey, the prices of Class II and Class III rebars in most steel mills are almost the same, except for the price of Grade II rebar at individual steel mills in the Xi’an market which is RMB 10/t to RMB 20/t lower than Grade III rebar.

Manager Li believes that the current sluggish sales of the steel market and the oversupply of demand have accelerated the process of the withdrawal of II-grade rebar from the market. He disclosed: "After this year, the state has increased the intensity of restrictions on the production of secondary rebar, the number of end-users for II rebar has declined significantly. After April, we basically did not re-enter Grade II rebar."

However, Manager Zhang Xi'an Xinxin Steel Trading Materials Co., Ltd. said: “Although the number of Grade II rebar stocks in the Xi’an market is now less than 30% of the total, Grade II rebar has a certain demand in the market. It is mainly because there are still Class II rebars in the design drawings of some projects currently under construction or to be built, so there is still a certain amount of demand for Class II rebar in the short term.” Mr. Zhang believes that the elimination of Class II rebar will be inevitable. It is estimated that by the end of this year, Class II rebar will basically exit the steel market.

Grade III rebar is about to completely replace "In the past, everyone quoted price was the first to report the price of grade II rebar, and then reported the price of grade III rebar. Now everyone is reported that the price of grade III rebar, basically do not report II thread The price of steel, which is a big change, shows that Grade III rebar has replaced the position of Grade II rebar in the market, and this year, the number of Grade II rebars sold in the market and the number of inventories have dropped significantly. On the other hand, Grade II rebar from the steel mills is significantly higher than Grade II rebars, and it is on the rise. On the other hand, Grade II rebars are not eligible for Grade III rebar, and sales are not available to everyone. Very few purchases.” said Zhang.

According to surveys, most Grade II rebars currently on the Xi’an market are resources of small steel mills, and the specifications are uneven, and the secondary rebar steel resources of large and medium steel mills are very scarce. Manager Li said: “At present, large steel mills in Xi’an market have very few rebar grade II resources, and the small steel mills have more resources, and they have fewer new goods and more used goods. As the purchasing volume of users continues to decline, large companies in the market The preliminary II grade rebar stocks are basically processed and no II rebar is operated."

According to reports, this year, domestic steel mills have entered the stage of phase-out of production of Class II rebar and production of Class III rebar, in accordance with the requirements of national energy conservation and emission reduction and adjustment of product structure. Since May, the Grade II rebars of Shaanxi Longgang, Jiuquan, Xinjiang Bagang and other steel mills, which have a relatively large share of rebar sales in the Xi’an market, have not arrived at all. It is reported that Haixin Steel Plant will also stop production of Grade II rebar in August.

Retirement of Grade II rebar will be considered by Baggage Manager. This year, the rapid delisting of Grade II rebar in the Xi'an steel market is related to the government's enforcement of the restricted production policy. According to reports, this year the National Development and Reform Commission, the Ministry of Industry and Information Technology and the Ministry of Housing and Urban-Rural Development will issue a revised version of the "National Standard for Steel for Reinforced Concrete Part 2: Hot Rolled Ribbed Bars." In addition, the “Guiding Opinions on Accelerating the Use of High-Strength Steel Bars” issued by the Ministry of Industry and Information Technology and the Ministry of Housing and Urban-Rural Development explicitly stated that by the end of 2013, Grade II rebars will be eliminated in construction projects; by the end of 2015, the output of high-strength steel bars in China will account for rebars. 80% of the total production, and the use of high-strength rebar in construction projects will reach more than 65% of the total amount of construction steel.

Manager Li said: “We learned from the supply of engineering projects that most of the projects under construction in Xi’an this year use Grade III rebar, and the amount of Grade II rebar on the real-estate site is also small. With the increasing safety requirements for construction The upgrading of steel products is imperative, and the state must save energy and reduce emissions."

Manager Zhang also holds the same view. He said: “III rebar has added vanadium, niobium, titanium and other alloys during its production process. Compared with ordinary grade II rebar, it has high strength, good toughness, welding performance and seismic performance. Excellent characteristics: At the same time, the replacement of Grade II rebar with Grade III rebar can also reduce China's steel consumption, save the use of iron ore, coke, and electricity, reduce emissions of carbon dioxide, waste gas and dust, and save resources and reduce emissions. China's dependence on raw material imports and energy conservation and emission reduction play an active role, and its economic and social benefits are very significant."