Domestic steel prices are steady and strong

Domestic steel prices have risen slightly for the second week in a row, and the performance of construction steels has been particularly “eye-catching”. However, if there is no appropriate amount of demand, the steel market will return to consolidation in the late period.

According to the latest market report provided by the well-known steel information agency “My Steel”, the domestic comprehensive steel price index rose slightly by 0.98% in the most recent week. This is the second consecutive week of rising steel prices. The pressure on steel stocks in various regions is not too high. The phenomenon of shortage of steel products in some markets has not yet been improved. The prices of raw materials such as steel billets and iron ore are also rising slightly. As a result, prices in the steel spot market are still rising, and the weekly gains have increased. The performance of construction steel is particularly "eye-catching." However, the most worrying of the market is the difficulty in matching the release of demand.

According to analysis, in the plate market, the overall price is still rising. The plate price rose first and then suppressed, indicating that the pattern of overall weakness has not changed. Shanghai, Guangzhou and other markets still have a weekly decline of RMB 10 to RMB 90 per ton. People in the market report that after a short-term rise at the beginning of the week, prices immediately fell. “High prices make it difficult for merchants to ship”, which has a detrimental effect on business confidence. The hot rolled coil market rebounded and rebounded. Shanghai, Guangzhou, Hefei and other markets experienced weekly gains of RMB 10 to RMB 80 per ton. The problem lies in the demand side: Downstream demand procurement, market transactions are more general. In the context of “high productivity, low demand”, businesses tend to be cautious about the outlook.

In the construction steel market, the overall price rose by about 1.3% a week. The weekly tonnage gains in the leading markets such as Shanghai, Guangzhou, and Beijing, as well as most of the country, are mostly concentrated between RMB 10 and RMB 150. After the price rises, the market is generally accepted. People in the market said that after a long period of weak operation, the market has a rebound demand. "But the actual transaction is difficult to cooperate effectively. This is really a helpless thing."

The price of imported ore is rising again and hit a high point in the past two months. According to the report of “Nishijin Shinkansen”, in the domestic ore market, the price of iron concentrate in Hebei is basically stable, and the purchase of steel mills is still more cautious. The price of imported ore continued to rise. Platts' 62% grade iron ore index was 136.75 US dollars per ton, up 1.75 U.S. dollars a week, hitting a high point in the past two months. Recently, many steel mills began to carry out the winter storage of iron ore, which drove the continuous rise in the price of long-term tenders. However, with the end of this round of supplemental inventory, coupled with the slowdown in the release of steel mill production capacity, the price of imported ore may gradually weaken.

Analysts at relevant institutions believe that the iron and steel industry plagued by overcapacity will be effectively "corrected" in terms of supply and demand on the next step of "enhanced environmental protection," and may "discharge a glimmer of hope." The intensity of environmental protection in the northern region is increasing, and the pressure on steel supply has eased, which may further drive down the expected decline in crude steel production. According to the latest forecast data of China Iron and Steel Association, the average daily output of crude steel in the country fell by 0.4% in the second half of October. In addition, by the end of October, stocks of key steel companies fell by 6.61% compared with the end of October, a significant drop.