October 15: Local steel market price and analysis

Steel mills cut prices on a large scale, and steel prices fluctuate repeatedly

On October 14, the domestic steel market oscillated, and the ex-factory price of  ordinary billet was stable at RMB 5,250/ton($820/ton).

Steel spot market

Construction Steel: On October 14, the average price of 20mm Class III seismic rebar in 31 major cities in China was 5883 yuan/ton($919/ton), down 16 yuan/ton($2.5/ton) from the previous trading day.

Hot-rolled coils: On October 14, the average price of 4.75mm hot-rolled coils in 24 major cities in China was 5849 yuan/ton($913/ton), an increase of 5 yuan/ton($0.78/ton) from the previous trading day.

Cold rolled coil: On October 14, the average price of 1.0mm cold coil in 24 major cities in China was 6,524 yuan/ton($1019/ton), down 3 yuan/ton($0.46/ton) from the previous trading day. Today, the spot market showed signs of stopping the decline, and most traders held a wait-and-see attitude, and the overall transaction was average.

Supply and demand of steel market

On the supply side: the output of five main varieties of steel was 9,139,800 tons, an increase of 189,600 tons on a week-on-week basis. Among them, the output of rebar was 2,765,500 tons, an increase of 113,900 tons on a week-on-week basis.

In terms of demand: the apparent consumption of five main types of steel was 10.0103 million tons, an increase of 1.7052 million tons on a week-on-week basis.

In terms of inventory: this week's total steel inventory was 17.632 million tons, a week-on-week decrease of 870,500 tons. Among them, steel mill inventory was 5.0606 million tons, a week-on-week decrease of 155,400 tons; steel social inventory was 12.571 million tons, a week-on-week decrease of 715,100 tons.

Since October, governments in many places have relaxed their power and production restrictions on steel mills, and steel production has rebounded. Coupled with the impact of fear of high price sentiment, early profits have been cashed in profits, and steel prices have risen and fallen in the first half of the week.