This week(August30-September5), the mainstream price of the spot market fluctuated strongly. Driven by the sentiment of the financial market and the overall supply reduction of steel enterprises, the pressure on the spot market's inventory resources was relatively small. The weekly consumption growth of the five major varieties this week was not as expected, mainly due to the limited decline in long product inventories and hindering the advancement of factories and warehouses. In addition, the current total consumption of the five major products is still weaker than the same period last year, but after entering the "Golden Nine", the chain of consumption changes will gradually improve.
Tangshan Steel Market on September 5
[Tangshan common billet] September 5, the billet ex-works in Qian'an area of Tangshan remained stable at 5,080rmb/ton(793USD/Ton) compared to yesterday. Warehousing spot reported 5180rmb/ton(809USD/Ton) out of the warehouse including tax. At present, the billet market is performing generally, and the prices of downstream finished products are mainly stable.
[Shaped steel] Tangshan shaped steel prices have been adjusted. Now mainstream steel mills are quoting I-beam 5500rmb/ton(859USD/Ton), angle steel 5420-5430rmb/ton(732-733usd/ton), channel steel 4480-5500rmb/ton(700-859 usd/ton), and the market trading is very light. In the market, some manufacturers’ preferential promotion and shipments failed, as a whole The transaction was weak.
[Strip steel] 145mm black strip steel: Tangshan 145mm strip steel mainstream remains stable, and the overall transaction is so so.
China steel market inventory of various steel:
Construction steel: The national construction steel prices fluctuated strongly this week, mainly due to the improvement in the national market this week, and the news of production restrictions in the external market also boosted the market's better expectations for the market outlook. However, this week the release of inventory data on our website, the small increase in steel mill output and the increase in factory inventory, spread the market pessimism, and the price has a slight correction. However, from the overall perspective of the week, the price shows a strong and volatile trend.
On the whole, it is expected that the price of local construction steel products will fluctuate strongly next week.
In terms of demand: the current real estate regulation is continuously upgraded and tightened, financial policies continue to be tightened, and real estate investment continues to be under pressure. In the future, the driving force of real estate demand for building materials will decrease, but there has not been a cliff-like decline, and resilience still exists. From the perspective of the construction industry business activity index, this month's construction industry business activity index was 60.5%, up 3.0 percentage points from the previous month, rising to a high level. The main reason is that the epidemic in Jiangsu has been brought under control, and the subsidence of floods in Henan has promoted the restoration of production in the construction industry. The follow-up pace of national demand release will continue to be normal.
From the perspective of mentality: the current period of snails is generally strong, but the trend of wide fluctuations has not changed, and market transaction volatility is still significantly affected by the snails of the future. The idea of market merchants taking the initiative to ship and control inventory has not changed. However, from the perspective of actual demand, the average transaction value is gradually increasing compared with the previous period, and the market outlook demand pessimism is gradually repaired.
Cold-rolled coil: This week(Aug31-Sep5), the national cold-rolled price fluctuated upward, and the market transactions were average. From a fundamental point of view, the production of cold-rolled rolling has decreased significantly on a week-on-week basis, and both the factory warehouse and the social warehouse have declined. In terms of the market, entering the "Golden September", the market mentality has slightly improved. Merchants mostly maintain shipments. The market volume has increased slightly during the market transaction week. Downstream procurement mostly purchases on demand, and it will take time for the full release of production capacity.
For next week(Sep6-Sep12): On the supply side, the recent overhaul of blast furnaces in local steel mills has led to a reduction in the supply of hot-rolled C material, and the actual supply of cold-rolled materials will be affected to a certain extent. It is expected that the cold-rolled supply will decrease slightly this month; market mentality: entering the traditional peak season, From the perspective of the information during the week and the overall positive market for electronic disks, merchants tend to be optimistic about the market outlook.
In summary, it is expected that domestic cold-rolled prices may fluctuate upward next week.
Win Road International Steel Product
Post time: Sep-06-2021