Steel mills cut prices intensively, with plans to resume production in December, and short-term steel prices run weakly
On November 29, the domestic steel market price showed a downward trend, and the ex factory price of Tangshan ordinary square billet was stable at 4290 yuan / ton($675/Ton). In early trading today, the overall transaction in the steel market was ok, and both rigid demand and speculation made inquiries into the market. In the afternoon, the market trading atmosphere was so so.
Steel spot market
Hot-rolled coils: On November 29, the average price of 4.75mm hot-rolled coils in 24 major cities in China was 4,774 yuan/ton($751/Ton), down 23 yuan/ton($3.62/Ton) from the previous trading day.
In terms of the contradiction between supply and demand, this year’s crude steel output fell by about 10%-11% compared with last year. The goal of leveling production has been completed. To ensure the marginalization of next year’s production indicators, it is expected that steel mill output in December will be slightly higher than that in November, while social inventories will be slightly higher than that in November. Last year, it was 5.6% higher, and the average weekly consumption dropped by 14-18%. At present, the market still faces pressure to destock. It is expected that the short-term hot-rolled coil market will weaken and the adjustment operation probability will be greater.
Cold rolled coil: On November 29, the average price of 1.0mm cold coil in 24 major cities in China was 5,482 yuan/ton($863/Ton), down 15 yuan/ton($2.36/Ton) from the previous trading day.
Today's market pessimism has not improved, the spot market is weak, and the average cold-rolled price has fallen. In terms of transactions, transactions in Shanghai, Tianjin, Guangzhou and other markets are still weak. The high-priced resources in the early stage have basically been sold out. The resources of steel mills have gradually arrived. Most of the merchants mainly ship products. The current market is still pessimistic. In the downstream, more purchases are made on demand, and the willingness to stock up is poor. It is expected that on the 30th, domestic cold-rolled spot prices will fluctuate in a narrow range and will be lowered.
Raw material spot market
Imported ore: On November 29, the spot price of imported iron ore was on the strong side, the market sentiment was active, and steel mills purchased on demand.
Coke: On November 29, the coke market was temporarily operating stably.
Scrap steel: On November 29, the average price of scrap steel in 45 major markets in China was 2,864 yuan/ton($451/Ton), an increase of 7 yuan/ton($1.1/Ton) from the previous trading day.
Supply and demand of steel market
According to a survey of 12 steel mills, a total of 16 blast furnaces are expected to resume production within December (mainly in the middle and late ten days), and it is estimated that the average daily output of molten iron will increase by about 37,000 tons.
Post time: Nov-30-2021