On December 7, the domestic steel market price continued its upward trend, and the price of ordinary billet in Tangshan rose by 20yuan to RMB 4,360/ton($692/Ton). The black futures market continued to be strong, and the spot market transactions performed well.
Steel spot market
Construction steel: On December 7, the average price of 20mm three-level seismic rebar in 31 major cities in China was 4844 yuan/ton($768/Ton), an increase of 21 yuan/ton($3.3/Ton) from the previous trading day. It is expected that on the 8th, domestic construction steel prices may remain high.
Hot-rolled coils: On December 7, the average price of 4.75mm hot-rolled coils in 24 major cities in China was 4,854 yuan/ton($770/Ton), an increase of 17 yuan/ton($2.7Ton) from the previous trading day. In the early trading market, affected by the sharp rise in raw material futures, various types of steel products rose to varying degrees, but the actual transaction situation was weak after the rise, and the price increase momentum was insufficient. The overall market supply and demand weak situation has not been effectively improved.
Cold rolled coil: On December 7, the average price of 1.0mm cold coil in 24 major cities in China was 5,503 yuan/ton($873/Ton), an increase of 2 yuan/ton($0.32/Ton) from the previous trading day. As the central bank announced a comprehensive RRR cut yesterday, the black futures market showed an overall upward trend today, but the spot market is more cautious, merchants generally focus on stable prices, and overall transactions are average. On the downstream side, as the off-season atmosphere in December became stronger, the performance of downstream demand was unlikely to improve significantly, leading to poor market transactions, excessive accumulation of traders’ inventories, and greater pressure on shipments.
Raw material spot market
Imported ore: On December 7, the spot market quotations of imported iron ore rose more than yesterday, and the trading sentiment was fair. Traders followed the market and steel mills purchased on demand.
Coke: On December 7, the coke market was temporarily operating steadily. Yesterday, some coke companies in Inner Mongolia raised 100-120 yuan/ton($16-19/Ton), but steel mills did not accept it.
Scrap steel: On December 7, the scrap market prices remained stable, the mainstream steel mill scrap prices remained stable, and the mainstream market scrap prices remained stable.
Supply and demand of steel market
From the current point of view, the winter storage time is gradually coming, and the current steel mills have considerable immediate profits per ton of steel, and the merchants believe that there is limited room for subsequent price rebounds.
Post time: Dec-08-2021