On September 1, the domestic steel market fell, and the ex factory price of Tangshan billet fell 20 to 5000 yuan / ton. The speculative demand of the market entered the market cautiously, the transaction of high-priced resources was blocked, and the transaction of low-priced resources improved slightly.
On September 1, three steel mills of China lowered the ex factory price of construction steel by 20-30 yuan / ton.
Construction steel: on September 1, the average price of 20mm grade III seismic deformed steel bars in 31 major cities in China was 5307 yuan / ton, down 11 yuan / ton compared with the previous trading day. In the short term, under the background of environmental protection supervision and reduction of crude steel production, the short-term market supply is expected to continue to decrease, while the demand has gradually improved since late August, and the contradiction between market supply will gradually appear over time.
Hot rolled coil: on September 1, the average price of 4.75mm hot rolled coil in 24 major cities in China was 5719 yuan / ton, down 24 yuan / ton compared with the previous trading day. The spot market is weak and downward, the market sentiment is low, the business confidence is insufficient in the afternoon, and the prices in some cities continue to fall, mainly for cash. The PMI data in August was not as good as expected, the expansion of the manufacturing industry was weakened, the market sentiment was frustrated, and the spot transaction fell, so businesses had to exchange price for quantity and ship at a lower price. However, at present, the market has expectations for the maintenance of steel plants in the later stage, and the demand in September is expected to make up for the demand affected by the flood and epidemic situation in the early stage.
Cold rolled coil: on September 1, the average price of 1.0mm cold coil in 24 major cities in China was 6492 yuan / ton, down 17 yuan / ton compared with the previous trading day. The futures hot volume fluctuated and fell, and merchants were cautious. Influenced by the mentality of "buying up but not buying down", the enthusiasm of downstream procurement is weak, the transaction of high-level resources is blocked, and the overall shipment performance of merchants is weak.
Raw material spot market
Coke: on September 1, the coke market was strong. The price of coke in Shandong and Hebei increased by 120 yuan / ton today. The downstream side has not responded yet and is still waiting. In terms of supply, recently, the environmental protection inspection in Shandong has become stricter. The production limit of coke enterprises in Heze area is about 50%. The rest of the production limit ranges are different, and the supply is reduced slightly, but the expected production limit time is short and the reduction is limited; Individual coke enterprises in Shanxi implement production restriction due to raw material restrictions. In terms of demand, some regional steel mills are expected to reduce production in September, the blast furnace operating rate of steel mills has decreased slightly, the coke inventory has increased slightly, and the contradiction between supply and demand is improving. The profit of coke enterprises is squeezed by the raw material side, and the psychology of transferring the pressure on the cost side by raising prices still exists. However, the profit of steel mills is lower than the high level in the early stage, which has been in conflict with frequent price increases, so it is necessary to beware of the risk of market correction.
Scrap steel: on September 1, the average price of scrap steel in 45 major markets in China was 3321 yuan / ton, up 3 yuan / ton from the previous trading day. Driven by profits, the enthusiasm of steel mills for waste mining has increased. However, the finished product price is weak today, and the scrap market as a whole holds a wait-and-see attitude.
Supply and demand of steel market
According to the survey of 237 circulation traders, the trading volume of building materials on Tuesday was 166400 tons, down 38.4% month on month, and remained at a low level of 167300 tons on Wednesday. Due to the expectation of increased blast furnace maintenance, iron ore futures prices have fallen sharply recently, steel costs have moved down, increasing the wait-and-see mood of downstream terminals. Most businesses have reduced prices and shipped goods, and steel prices show signs of stopping falling and stabilizing in the afternoon.
Post time: Sep-02-2021