On January 19, the domestic steel market price mainly rose, and the ex-factory price of Tangshan billet rose by 50 yuan to 4,410 yuan/ton. In terms of transactions, the trading atmosphere in the spot market was deserted, and the transactions were generally average.
Steel spot market
Construction steel: On January 19, the average price of 20mm rebar in 31 major cities in China was 4,791 yuan/ton, up 10 yuan/ton from the previous trading day. On the whole, the downstream terminal factories have been shut down one after another since this week, and the workers have returned to their hometowns on holiday, and the market has gradually entered a state of price and no market.
Hot-rolled coil: On January 19, the average price of 4.75mm hot-rolled coil in 24 major cities in China was 4,885 yuan/ton, up 40 yuan/ton from the previous trading day. In the morning, the price rose strongly, and the spot price followed the increase, and the transaction performance was good. In the late afternoon, the volume fell slightly, and the downstream purchase volume performance narrowed, and the transaction was acceptable throughout the day.
Considering that it is the off-season at the end of the year, the demand will continue to be limited. On the whole, the fundamentals of hot coils are currently in a strong state, so it is expected that the prices of hot-rolled coils on the 20th may increase steadily.
Cold-rolled coil: On January 19, the average price of 1.0mm cold coil in 24 major cities in China was 5,458 yuan/ton, up 12 yuan/ton from the previous trading day. End customers are cautious and wait and see, and the overall shipments of merchants are weak. As far as the market outlook is concerned, the downstream is on holiday one after another, and it is difficult to see a significant improvement in short-term demand. To sum up, it is expected that the domestic cold rolling price fluctuates on the 20th.
Raw material spot market
Imported ore: On January 19, the spot market price of imported iron ore in Shandong kept rising, and the market sentiment was acceptable.
Coke: On January 19, the coke market remained stable for the time being.
Scrap: On January 19, the average price of scrap in 45 major markets in China was 3,154 yuan/ton, down 7 yuan/ton from the previous trading day.
Steel market supply and demand
First of all, on the 18th, the heads of the National Development and Reform Commission, the central bank and other relevant departments have successively released signals of stable growth, including moderately advanced infrastructure investment; China has less room for RRR cuts, but there is still some room, etc., which will boost the market to a certain extent. Secondly, due to the severe epidemic situation in various regions recently, coal mine management and control policies have become stricter, and the iron ore port warehouse has declined. On the whole, good news and cost support have driven steel prices to rise again, but terminal demand continues to shrink before the holiday, steel prices are guarded against the risk of chasing up, and the shock pattern in the later period is difficult to change.
Post time: Jan-20-2022