On January 6, the domestic steel market mainly rose slightly, and the ex-factory price of Tangshan billet rose by 40 ($6.3/ton) to 4,320 yuan/ton($685/ton). In terms of transaction, the transaction situation is generally general, and the terminal purchases on demand.
Steel spot market
Construction steel: On January 6, the average price of 20mm rebar in 31 major cities in China was 4,741 yuan/ton($752/ton), an increase of 4 yuan/ton($0.63/ton) from the previous trading day.
The rebar supply rebounded significantly this week, mainly due to the perfect ending of the production leveling index in 2021, and the slight relaxation of production restrictions. This superimposed on the profitability of steel mills at this stage, and some steel mills have resumed production one after another, prompting production to rebound. expansion.
However, due to the continued weakening of the demand side before the Spring Festival is a foregone conclusion, the overall market lacks upward momentum.
Cold rolled coil: On January 6, the average price of 1.0mm cold coil in 24 major cities of China was 5444 yuan/ton($864/ton), an increase of 1 yuan/ton($0.158/ton) from the previous trading day.
After the three-day holiday on New Year's Day, coupled with the continuous rise of black electronic disk futures this week, the market trading atmosphere is more active, and downstream purchases have increased compared with before the holiday.
In terms of mentality, most businesses in the market currently prefer to ship to warehouses. In terms of inventory, this week’s cold-rolled steel mill inventory was 324,400 tons, a week-on-week increase of 4,900 tons, social inventories were 1.2141 million tons, a week-on-week increase of 5,700 tons, and weekly consumption was 806,100 tons, a month-on-month increase of 24,500 tons. On the whole, it is expected that on the 7th, domestic cold-rolled spot prices may be stable and strong.
Raw material spot market
Coke: On January 6, the coke market was on the strong side, and Shandong and Hebei coking companies raised the second round by 200 yuan/ton($31.7/ton).
Scrap Steel: On January 6, the average scrap price in 45 major markets of China was 3130 yuan/ton($496/ton), an increase of 14 yuan/ton($2.22/ton) from the previous trading day, and mainstream steel mill scrap prices increased by 20-50 yuan/ton($3.12-7.93/ton).
Supply and demand of steel market
In terms of supply: According to research, the output of 5-mai steel products this Friday was 9,278,600 tons, an increase of 236,700 tons on a week-on-week basis.
In terms of Demand: The apparent consumption of large varieties of steel this Friday was 9.085 million tons, an increase of 36,500 tons on a week-on-week basis.
In terms of inventory: this week's total steel inventory was 13.1509 million tons, an increase of 193,600 tons on a week-on-week basis. Among them, steel mill inventories amounted to 4,263,400 tons, an increase of 54,400 tons on a week-on-week basis, and increased for two consecutive weeks; the social stock of steel was 8,887,500 tons, an increase of 139,200 tons on a week-on-week basis.
As the Spring Festival approaches, demand may become weaker, and the steel market has entered a stage of pre-holiday accumulation. my country's coal supply and price stabilization work will be further promoted, and it should not be overly bullish on coal prices. The upward movement of steel costs may be difficult to continue to push up steel prices, and the market will fluctuate in the short term.
Post time: Jan-07-2022