----Interview with Weiwei Wang
General Manager
Shanghai Gangtian Supply Chain Co., Ltd
Shanghai Gangtian Supply Chain Co., Ltd. was established in 2021 and is one of the major construction steel distributors in East China. The company primarily deals in construction steel products produced by Zhongxin Steel, with annual sales volume reaching nearly 250,000 tons.
Asian Metal: Hello Mr. Wang. Thank you for taking the time for this interview. Could you please briefly introduce your company?
Mr. Wang: Shanghai Gangtian Supply Chain Co., Ltd. was established in 2021, and we serve as the sales agent for Zhongxin Steel. Our main products include rebar, coiled rebar, wire rod, and others. Our head office is located at Room 201-1, Building 1, Songjiang Steel City, Lane 103, Sizhuan Road, Songjiang District, Shanghai. Additionally, we have offices in Linyi, Shandong, Zhengzhou, Henan, Hefei, Anhui, and several other regions. Currently, our monthly sales volume of construction steel is around 20,000 tons, with a standing inventory of over 5,000 tons.
Asian Metal: What is the current supply situation of construction steel from the mills?
Mr. Wang: Since the Spring Festival in February, more than 90% of steel mills in East China have resumed normal production, and the overall supply of construction steel is relatively sufficient. For example, Zhongxin Steel's monthly output of construction steel has remained stable at over 400,000 tons.
Asian Metal: Unlike previous years, domestic construction steel prices did not rise after this year's Spring Festival. What do you think are the main reasons for this?
Mr. Wang: That’s correct. After the Spring Festival, construction steel prices did not rebound as they typically do. Taking East China as an example, the price of rebar Φ18-20mm from mainstream mills such as Zhongxin Steel fluctuated around RMB 3,200/t (USD 446/t) in the Shanghai market during Q1. The primary reasons were weak market demand, low raw material prices, and a sluggish futures market. Entering the second quarter, as raw material and futures prices continued to fall, rebar prices also declined further. Currently, the mainstream price of rebar Φ18-20mm from Zhongxin Steel in the Shanghai market has dropped to around RMB 3,000/t (USD 418/t).
Asian Metal: Market feedback suggests that construction steel inventory increased after the holiday. What is the current inventory level in the Shanghai market?
Mr. Wang: That’s true. Statistics show that construction steel inventory in the Shanghai market peaked at around 700,000 tons in February and March, higher than the typical level of about 550,000 tons. However, as market resources were gradually digested and traders showed low willingness to restock, inventory has since declined to approximately 300,000 tons.
Asian Metal: Could you share an update on the progress of downstream construction projects in East China?
Mr. Wang: Most downstream projects in East China have now resumed, with a construction resumption rate estimated at over 90%. However, most are ongoing projects with few new ones starting, so demand for construction steel has yet to show significant improvement.
Asian Metal: What is your outlook for the domestic construction steel market in the third quarter?
Mr. Wang: I personally believe that construction steel prices will remain generally stable in Q3, with a slight downward trend compared to Q2. Recently, prices for raw materials like iron ore have fallen, easing cost pressures on steel mills. It is expected that most mills will not significantly reduce or suspend production in the near future. As a result, construction steel inventory levels are unlikely to decline significantly. For rebar, for instance, I anticipate a market price decrease of around RMB 50/t (USD 7/t) in Q3.
Asian Metal: What are your company's development plans for 2025?
Mr. Wang: Given the current economic and market conditions, our company remains cautious and competitive. We won’t pursue blind expansion but will instead focus on consolidating our existing business. Once the market shows real improvement, we’ll step up efforts to explore new business opportunities.
Asian Metal: Thank you, Mr. Wang, for your valuable insights. We wish Shanghai Gangtian continued success and prosperity!
