Raw material spot market
Imported ore: On August 17, the market price of imported iron ore weakened slightly, and the transaction was not good. Traders were more motivated to ship shipments, but the Lianhua Group fluctuated down during the intraday trading session. Some traders had a weakened attitude to support prices. The speculative demand in the market was not good, the enthusiasm for inquiries was weak, and the overall market sentiment to wait and see was strong. Steel mills still maintain on-demand procurement operations, mostly based on tentative enquiries. It is understood that today only a few steel mills have purchasing requirements, and the market trading atmosphere is deserted. The short-term supply in the market is at a low level, and the demand has stabilized slightly.
Coke: On August 17, the coke market was operating strongly. The mainstream steel mills in Hebei and some steel mills in Shandong have agreed to raise the price. The fourth round of rise has basically landed, and the market mentality is relatively strong. At present, the supply and demand of coke are booming, the downstream is actively purchasing, and the upstream sales are smooth. The situation of tight supply of coking coal and continuous price increases will continue in the short term. Coking coal will continue to squeeze the profits of coking companies from the raw material end. The pressure on production costs of coking companies will be difficult to eliminate in the short term. Some companies even face losses, and steel mills have already gained profits. Obviously repaired, there is room for acceptance of the price increase of coke. In the short term, the coke market is on the strong side.
Scrap steel: On August 17, the scrap market price remained stable. The mainstream steel mill scrap price remained stable, and the mainstream market scrap price remained stable. The average price of scrap steel in 45 major markets across the country was RMB 3,284/ton, an increase of RMB 8/ton from the previous trading day. Due to the small number of recent steel mills’ arrivals, the short-term steel mills’ purchase prices are mostly adjusted within a narrow range based on their own arrivals and inventory conditions. Merchants maintain a fast-forward and fast-out strategy, with a wait-and-see attitude. The market is operating weakly in the maturity period, which suppresses the price of scrap steel. Scrap steel prices are expected to run steadily on the 18th.
Steel market forecast of China
The National Development and Reform Commission stated at a press conference on August 17 that in the next step, it will continue to pay attention to the price trend of bulk commodities, make good use of both domestic and foreign resources, and take a variety of measures, including increasing production and supply, and timely reserves. , Strengthen import and export regulation, increase market supervision, etc., and earnestly do a good job in ensuring the supply of bulk commodities and stabilizing prices.
At present, the domestic steel market is intertwined with long and short, and the game is fierce. On the one hand, many ministries and commissions continued to voice their efforts to ensure the supply of bulk commodities and stabilize prices, and speculative demand faded. At the same time, the downward pressure on the domestic economy has increased, the property market has gradually cooled, and downstream terminal demand has also been weak. On the other hand, the daily output of crude steel nationwide fell sharply in July, and the task of reducing output in the second half of the year was heavy. The output in August was still running at a low level during the year. At the same time, steel stocks in the off-season have fallen, and steel mills have a strong willingness to raise prices. In the short term, steel prices may continue to fluctuate, with limited ups and downs.
Updated: August 18, 2021
Post time: Aug-18-2021