Steel spot market
Construction steel: On October 8, the average price of 20mm three-level seismic rebar in 31 major cities of China was 6,023 yuan/ton($941/ton), an increase of 98 yuan/ton($15.3/ton) from the previous trading day. Since the current spot price is already at an absolute high level, there is insufficient motivation for the price to continue to rise.
Hot-rolled coils: On October 8, the average price of 4.75mm hot-rolled coils in 24 major cities of China was 5,917 yuan/ton($924/ton), an increase of 86 yuan/ton($13.4/ton) from the previous trading day.
Cold rolled coil: On October 8, the average price of 1.0mm cold coil in 24 major cities of China was 6,532 yuan/ton($1020/ton), an increase of 47 yuan/ton($7.34/ton) from the previous trading day.
Raw material spot market
Imported iron ore: On October 8th, the spot market for imported iron ore in Shandong was operating strongly.
Coke: On October 8, the coke market was temporarily operating steadily.
Scrap steel: On October 8, the average price of scrap steel in 45 major markets of China was 3,343 yuan/ton($522/ton), an increase of 11 yuan/ton$(1.72/ton) from the previous trading day.
Supply and demand of steel market
On the supply side: The output of steel products was 8.9502 million tons this Friday, an increase of 351,400 tons on a week-on-week basis. Among them, the total output of rebar and wire rod was 3.9556 million tons, an increase of 346,900 tons on a week-on-week basis.
Demand side: The apparent consumption of 5-large-varieties of steel products this Friday was 8.305 million tons, a week-on-week decrease of 1.6446 million tons.
In terms of inventory: this week’s total steel inventory was 18.502 million tons, an increase of 645,100 tons on a week-on-week basis.
During the National Day this year, the total steel inventory increased by 645,100 tons compared with the pre-holiday period, which was significantly lower than the increase of 1.5249 million tons in the same period in 2020 and the increase of 1.2467 million tons in the same period in 2019. The current inventory pressure is controllable.
During the National Day period, steel mills in some regions relaxed production restrictions. Considering that the domestic power supply is still tight, the dual control of energy consumption continues to be implemented, and it is difficult to resume production on a large scale in the later period. At the same time, with the recovery of demand after the holiday, stocks may stop rising and falling, and steel prices may continue to run at a high level in the short term.
Post time: Oct-09-2021