On September 15, the domestic steel market price generally fell, and the ex-factory price of Tangshan ordinary billet remained stable at 5220 yuan/ton($815/ton). In early trading today, the black futures market opened lower across the board, and the market mentality was weak. Merchants mainly reduced prices and delivered goods. Transactions improved in the afternoon at lower price.
Steel spot market
Construction steel: On September 15, the average price of 20mm three-level seismic rebar in 31 major cities of China was 5557 yuan/ton(868/ton), down 18 yuan/ton from the previous trading day. After the market price hike last week, the inventory resources of most traders and second-end traders are currently at a floating profit level.
Hot-rolled coils: On September 15, the average price of 4.75mm hot-rolled coils in 24 major cities of China was 5,785 yuan/ton($903/ton), down 29 yuan/ton($4.5/ton) from the previous trading day.
Cold rolled coil: On September 15, the average price of 1.0mm cold coil in 24 major cities in China was 6,506 yuan/ton, down by 20 yuan/ton from the previous trading day. In terms of futures, today's futures fluctuated downward, and merchants were mainly cautious. In terms of transactions, downstream customers were mainly cautious and wait-and-see, and merchants' overall shipments were weak.
Supply and demand of steel market
On the demand side: the domestic economic vitality was insufficient in August. From January to August, investment in infrastructure, real estate, and manufacturing increased by 2.9%, 10.9%, and 15.7% year-on-year, down 1.7, 1.8, and 1.6 percentage points from January to July, respectively.
On the supply side: the national average daily output of crude steel in August was 2,685,200 tons, a decrease of 4.1% from the previous month; the average daily output of pig iron was 2,307,400 tons, a decrease of 1.8% from the previous month. Due to the strengthening of dual control of energy consumption in many places, steel mills have actively adopted measures such as production equipment restriction, production suspension, and early maintenance.
According to the latest data from China Iron and Steel Association, in the first ten days of September, key steel companies produced 2.0449 million tons of crude steel per day, a decrease of 0.38% from the previous month; steel inventory was 13.323 million tons, a decrease of 0.77% from the previous ten days.
Since September, the construction of engineering projects has accelerated, and the overall demand for steel has picked up slightly. However, due to the local epidemic and typhoon weather, the demand performance is still unstable, especially in the first half of this week. Demand has shrunk. It is expected that low-price transactions will improve in the second half of the week. Steel production continued to decline month-on-month in August. With the strengthening of dual control of energy consumption in various regions, it is expected that the supply side will still be suppressed in September. In the short term, the pressure on supply and demand in the steel market is not strong, and the room for steel prices to fall may be limited.
Win Road International Steel Product
Post time: Sep-16-2021