Last week, the country’s construction steel sharply lower. The main reason is that last week’s black futures fell sharply, the spot market terminal purchase wait-and-see sentiment is very strong, poor demand. Spot merchants fear high and the rapid release of pessimism, prices fell faster, a larger range. The week accumulates to show the accelerating downward trend to run.
As of May 21, the average price of 20mm three-level rebar in major cities in China is RMB 5402 / ton, down by RMB 698 / ton in the week on month. The average price of 8.0mmHPB300 high line is 5693 yuan/ton, down 657 yuan/ton from week to week
Tangshan Steel Billet Express, May 22
Tangshan pubillet: in the afternoon of 22nd, pubillet resources in Qianan area of Tangshan reduced by 170 with tax to 4900 yuan/ton.
At present, the billet market overall transaction is general, downstream finished material prices are reduced in different ranges. Specific transactions are as follows:
Strip steel: Tangshan 145 strip steel factory opening price than yesterday fell 180-200, the overall transaction weakness, then continued to drop 100 in the pan, after the transaction has no significant improvement, now the country, the mainstream manufacturers such as security quoted 5200; Tangshan 355 strip steel price dropped 150-200 than yesterday the main spot market 5270-5300, Ruifeng 5310-5350, forward higher than the spot price 10-20, the market offer is few, the transaction is weak
Profile: Tangshan section steel price cut 100-200, now the mainstream steel offer I-beam 5200, Angle 5200-5630, channel 5100, spot prices continue to decrease, the market confidence is more insufficient, the overall shipment is difficult.
Pipe: Tangshan scaffold pipe mainstream steel mill ex-factory price reduced by 300, quoted 5280-5350, cash including tax, general transaction.
Hot coil: Tangshan open plate market price intraday down 50,1500 wide open plate Tangshan steel 5510, Yansteel/Anfeng 5500, Manganese Kaiping 5650. All prices include tax.
Medium plate: Tangshan plate market prices fell 40 intraday, Tangshan steel 14-40mm plate quoted 5500, low alloy plate 5700, cash including tax.
Building materials: Tangshan construction steel market price down 120, now three large thread 5380, three small thread 5600, disk screw 5550, high wire 5250
Tangshan steel fundamentals last week
Profits: Last week, the average cost of molten iron excluding tax of 10 sample steel mills in Tangshan area was 3613 yuan/ton, and the average cost of billet excluding tax was 4,527 yuan/ton, and the weekly ratio increased by 297 yuan/ton. Compared with the ex-factory price of common billet on May 22, the average gross profit of the steel mills was about 373 yuan/ton, and the weekly ratio decreased by 1,067 yuan/ton.
Blast furnace production: 62 of the 126 blast furnaces in Tangshan area are overhauled (excluding long-term production), and the total volume of overhauled blast furnaces is 51624m³; The weekly affected output was about 1.057,900 tons, and the capacity utilization rate was 62.39%, up 0.05% compared with the previous week, up 1.28% compared with the same period last month, and down 25.70% compared with the same period last year.
Last week survey cycle, Tangshan area of individual steel enterprises blast furnace maintenance and resumption of production coexist, the overall change is not big, according to our network survey, Tangshan steel enterprises are still implementing the annual production limit plan, the overall production limit will be adjusted dynamically with the production limit requirements, but overall, Tangshan blast furnace capacity utilization rate will continue to maintain a low operation.
Stock situation of billets: Last week, the stock of billets of the same caliber in main warehouses and ports in Tangshan was 436,500 tons, with a weekly decrease of 96,100 tons. The price was low in the research period, and the market trading was low, and the stock reduction was mainly concentrated on the long-term delivery of documents.
The commencement of bland rolling mill: of the 47 section steel production lines in Tangshan area, 31 actually started production lines, the overall utilization rate was 65.96%, down 4.25% compared with the previous week. Capacity utilization was 74.36%, up 5.41% from the previous week.
Price forecast: in the recent declining market changes, the adjustment of billet ex-factory price is abnormal, which is continuously higher than the spot price in the market. The direct delivery agreement is obviously affected, and the whole price adjustment trend will return to normalization eventually. At present, the bottom effect of billet fundamentals is basically invalid, and the trend of trading volume and price is influenced by market sentiment. The enthusiasm of downstream rolling mills is restricted by transaction pressure, finished product storage and production and sales profit. In addition, Fengrun district implements 30% production limit and emission reduction. In the short term, billet prices still need a round of downward adjustment, focusing on the change of market sentiment.
This week’s steel market forecast
Supply point of view: in the short term, due to the successive impact of various industrial policies and documents, price callback, profit compression, some enterprises or selective implementation of the initiative to reduce production, production conversion or inspection plan, the late overall is expected to inhibit the release of a large number of production.
Demand: at present, the heavy rain weather in East China is increasing, and North China is also gradually entering summer. Outdoor operations and long-distance transportation will be significantly affected. However, last week’s sharp downward price of terminal procurement pressure has been significantly eased, early delayed orders will be released, short-term demand still has room to look forward to.
Mentality point of view: last week due to the sharp decline in the disk and spot market, making the market fear of high sentiment and pessimism increased rapidly, market confidence is obviously frustrated. Businesses are currently operating in favor of price exploration, but the market has not gradually stabilized under the signs of terminal wait-and-see sentiment is still relatively strong.
In general, is expected this week the national construction of steel prices will be a steady movement of shock.
Translation software translation, if there is any error please forgive.
Source: My Web of Steel
Post time: 26-05-21