On September 8, the domestic steel market fluctuated weakly, and the ex-factory price of Tangshan billet remained is stable at 5120 yuan/ton($800/ton). Affected by the drop in steel futures, the trading volume in the morning was average, some merchants cut prices and shipped, and the trading volume rebounded in the afternoon.
Steel spot market
Construction steel: On September 8, the average price of 20mm three-level seismic rebar in 31 major cities across the country was 5,412 yuan/ton($845/ton), down 7 yuan/ton($1.1/ton) from the previous trading day. The spot quotations in the domestic mainstream markets loosened slightly in the morning, and the overall market turnover in the morning was average, and the snails rebounded from low levels in the late afternoon.
In the short term, on the supply side, in the past two days, many steel mills of China have frequently cut production and overhaul, resource supply is limited, and the market is bullish. In terms of demand, the weather has gradually improved recently, market shipments have rebounded, and demand has gradually improved.
Cold rolled coil: On September 8, the average price of 1.0mm cold coil in 24 major cities across the country was 6522 yuan/ton($1019/ton), which was unchanged from the previous trading day. The hot roll of futures fluctuated and fell, and merchants were mainly cautious. From the perspective of transaction volume, the enthusiasm for downstream purchases is weak, the transactions of high-level resources are blocked, and the overall shipment performance of merchants is weak.
Hot-rolled coils: On September 8, the average price of 4.75mm hot-rolled coils in 24 major cities across the country was 5798 yuan/ton（$905/ton）, down 20 yuan/ton($3.1/ton) from the previous trading day. In the early trading, the quotations of merchants fell weakly, and the market transactions were generally average. In the afternoon, as the futures rebounded, the spot market's mentality was slightly better, some market prices rebounded slightly, and transactions improved. Due to the reduction in the supply of market resources due to steel mills’ production restrictions, there is still a downward trend in inventory, and the current cost of incoming resources is high, so merchants are willing to price, but the release of demand still takes time, and there is a lack of transactions. Support, price increases are also relatively weak.
Supply and demand of steel market
Affected by policy controls, today's black futures market's gains have been hindered, the steel spot market has been cautiously trading, terminal purchasing enthusiasm has declined, and some merchants have cut prices for sales performance. Entering the fundamental preference of the steel market for supply and demand in September, the overall price of steel this week showed strong volatility. However, under the pressure of rising downstream costs and the government's guarantee of supply and price stability, demand has been unstable, and steel prices will fluctuate repeatedly due to the fluctuation of transactions.
Win Road International Steel Product
Post time: Sep-09-2021