The spot market prices were generally weak this week. Specifically, the market was affected by the epidemic, the demand recovery was limited, the futures market fell to a new low in stages, and speculative demand was greatly weakened. At the same time, 4th rounds of coke landed, and the cost support of steel mills weakened; as the market ran out on Friday, Sentiment improved in the market, prices rose slightly, and transactions followed up.
【 Ordinary billet】
Ordinary billet: price of billet is stable, and the mainstream steel mills area are currently selling ordinary billet at 4,470 yuan/ton($690/ton). At present, some steel companies in the billet market ship at low prices in order to relieve capital pressure, while traders and some rolling steel companies are selling at low prices. Enterprises are more active in replenishing inventory at low prices, the overall transaction is good, and the downward pressure on prices has been partially released.
【Shaped steel-H beam, I beam, Angle steel, U channel ects.】
Shaped steel factory: the price is stable and weakening. At present, mainstream steel mills offer I-beam 4,860 yuan/ton($748/ton), angle steel 4,810 yuan/ton($740/ton), and channel steel 4,830 yuan/ton($743/ton).
【steel Strip】
145mm strip steel market: Some enterprises 145mm steel strip market raised their prices by 20 yuan/ton($3/ton) in early trading, and the mainstream reported 4700-4720/ton($723-726/ton).
355mm hot rolled steel strip steel market: 355mm strip steel market price rose 20 yuan from yesterday afternoon, the mainstream spot was 4,650 yuan/ton($715/ton), the market forward was 5-15 yuan/ton($0.76-2.3/ton) higher than the spot resource, and the transaction was weak.
【Base material of Hot rolled coil and cold rolled coil】
Uncoiling flat coil market rose 20yuan/ton($3/ton), 1500mm wide general coil steel 4770 yuan / ton($733/ton).
Cold-rolled base material: The market price of cold-rolled base material increased by 60 yuan/ton($9.23/ton) compared with yesterday, 3.0mm*1010mm was 4690 yuan/ton($721/ton). At present, the actual demand release is insufficient, and most of them are speculative, and the lower end has less goods.
【Pipe material】
Welded pipe and galvanized pipe market: the price is weak, 4 inch 3.75mm new national standard hot-dip galvanized pipe, price is 5880 yuan / ton($904/ton) by weighing including tax. Affected by the booming futures, traders are stimulated to speculate, and most of them are replenished on dips, and the market turnover has increased significantly.
Forecast next week
Overall, in terms of basic data, the current stage of steel supply and spot inventory performance has decreased simultaneously, market speculation has increased, and downstream purchases have shown signs of recovery in the near future. However, in terms of the current overall digestion speed, although the fundamentals have been repaired, the overall progress is still not optimistic, and most of the transactions are concentrated in low-priced resources. For the follow-up market, the negative side of supply has not continued to increase to give the market a certain respite. At the same time, considering that the demand continues to recover slowly at this stage and the overall price has been suppressed to the point in the near future, the profit margin can continue to be further compressed. . Near the weekend, the futures market rebounded, and the mentality of spot merchants was boosted. It is expected that the domestic steel market price may fluctuate at a low level next week.
Post time: May-30-2022