June13: Steel mills cut prices on a large scale

On June 13, the domestic steel market price declined weakly, and the ex-factory price of Tangshan ordinary billet fell by 50yuan/ton to 4430 yuan/ton($681/ton).

Steel market price

Construction steel: On June 13, the average price of 20mm grade 3 seismic rebar in 31 major cities across the country was 4,762 yuan/ton, down 59 yuan/ton from the previous trading day.
Cold-rolled coil: On June 13, the average price of 1.0mm cold coil in 24 major cities across the country was 5,410 yuan/ton, down 17 yuan/ton from the previous trading day. It is understood that the steel mills in the Lecong market currently have plans to reduce production, and the market resources will be reduced in the later stage, while the inventory pressure in the southwest market still exists, and the terminal demand performance is average.

Steel market price forecast

Macroscopically: In May, new RMB loans were 1.89 trillion yuan, an increase of 390 billion yuan year-on-year, which promoted the recovery of M2 and social financing. However, medium and long-term loans to residents increased by 104.7 billion yuan, a decrease of 337.9 billion yuan year-on-year; medium and long-term loans to enterprises increased by 555.1 billion yuan, a decrease of 97.7 billion yuan compared with the same period last year.
In terms of supply and demand: the heavy rainfall in the south continues, the recent steel market transaction volume has been weak, and the pressure on traders' inventory has increased sharply, mainly to reduce prices to go to the warehouse. Independent electric arc furnace steel mills continued to lose money and reduce production, but long-process steel mills made small profits, some companies resumed production, and the supply side expanded slightly.

Although the domestic epidemic situation continues to improve and macro policy support has promoted enterprises to speed up the resumption of work and production, considering the factors of the off-season and the recovery of residents' willingness to purchase houses and enterprises to invest, the demand for steel in the first half of June was first strong and then weak, and the performance was very unstable. . In the short term, the pressure of supply and demand in the steel market has increased, and the price of steel may fluctuate weakly.