On September 7, the domestic steel market prices were dominated by price increases, and the ex-factory price of ordinary steel billets in Tangshan rose by 20yuan(3.1usd) to 5,120 yuan/ton(800usd/ton). Today, the black futures market is rising across the board, and the business mentality is acceptable, but from the perspective of trading volume, it has shrunk a little.
On the 7th, black futures rose across the board. Among them, the main contracts of thermal coal, coke, and coking coal futures all hit a record high.
On the 7th, 12 steel mills across the country raised the ex-factory price of construction steel by 10-60 yuan/ton.
Steel spot market
Construction steel: On September 7, the average price of 20mm three-level seismic rebar in 31 major cities of China was 5,419 yuan/ton(850usd/ton), an increase of 27 yuan/ton(4.2usd/ton) from the previous trading day. Specifically, the quotations of construction steel products in various domestic markets in the early trading continued yesterday's upward trend. After the quotations, the transaction situation was relatively ordinary, the intraday futures weakened, and the actual transaction prices in some markets fell darkly. In the late afternoon, the snails oscillated, the spot price remained stable, and the overall transaction was fair, but not as good as yesterday. According to feedback from businesses, the actual demand in the past two days has accounted for a relatively large proportion, while speculative demand has been relatively small.
Raw material spot market
Cold rolled coil: On September 7, the average price of 1.0mm cold coil in 24 major cities of China was 6522 yuan/ton(1019usd/ton), an increase of 6 yuan/ton(0.93usd/ton) from the previous trading day. Today's futures fluctuated, and spot hot-rolled products rose within a narrow range, and cold-rolled prices have a certain degree of support. It is reported that today's market transactions in many places are weak, some merchants have darkly reduced shipments and cashed out, and market merchants have a weak replenishment mood. Downstream industries mostly purchase on demand.
Hot-rolled coils: On September 7, the average price of 4.75mm hot-rolled coils in 24 major cities of China was 5818 yuan/ton(909usd/ton), an increase of 21 yuan/ton(3.28usd/ton) from the previous transaction. Today's black commodity futures market is volatile, and the market mentality is relatively optimistic. In the morning, merchants' quotations rose slightly, but after the rise, the transaction was generally average, and some market prices fell slightly in the afternoon. Affected by the limited production of steel mills, the supply of market resources has decreased, which has also supported the strengthening of prices, but the demand side has not improved significantly. The downstream purchases are basically on-demand, and the continuous release of transactions is difficult, which also restricts the height of price increases.
Supply and demand of steel market
In the short term, the crude steel reduction policy is expected to be further strengthened, and in early September, some areas have further tightened the limited production. The demand has been steadily released since late August, and the fundamentals are expected to gradually improve as supply and demand fluctuate.
Win Road International Steel Product
Post time: Sep-08-2021