Construction steel prices drop to 3200 yuan; Xinjiang once again becomes the national low point.

From the outbreak of the public health event in Urumqi in mid-July to the full reopening of Xinjiang by early September, the demand for construction steel in Xinjiang plummeted to an all-time low over this one-and-a-half-month period. Although most steel mills implemented various levels of production halts or reductions, the halt in logistics led to a rapid accumulation of construction steel inventory within the region. However, upon the normalization of the market, the terminal demand did not surge as anticipated, resulting in a significant price drop for construction steel in Xinjiang. Prices have fallen from their previous high levels to become the lowest in the country.

Within two months following the outbreak of the public health emergency, the price of construction steel in the Urumqi market entered a one-way downward trend, despite attempts by major steel mills within the region to stabilize prices, which were largely futile. Comparing the market prices before and after the outbreak, on July 17th, the day Urumqi was sealed off, the base price of Baigang rebars in the market was 3,780-3,800 yuan/ton, and the Kuyu rebars were 3,760 yuan. As of September 18th, the base price of Baigang rebars in the Urumqi market was 3,380 yuan/ton, a decrease of 400-420 yuan/ton, and the Kuyu rebars were 3,220 yuan/ton, a decrease of 540 yuan/ton, nearing the lowest price of 3,150 yuan/ton since 2017. When compared to other regions in the country, taking the 20mm Grade 3 rebars as an example, Urumqi is about 306 yuan/ton lower than the national average among the major steel mills in provincial capitals, and 180-200 yuan/ton lower than the other price lowland, the Yinchuan market, thus returning to the lowest price point in the country. Moreover, with the current price gap of nearly 160 yuan/ton between Baigang and Kuyu, and Kunlun markets in Urumqi, the market pressure on Baigang's sales is evident, and it is highly likely that the trading prices for Baigang in the market will continue to decline in the later period.