Market price of steel on August 7, 2023

Building steel: On August 7th, the average price of 20mm Grade III seismic resistant threaded steel in 31 major cities nationwide was 3802 yuan/ton, a decrease of 24 yuan/ton compared to the previous trading day. In the short term, on the one hand, although there have been continuous positive macroeconomic news in China recently, specific policies have not yet been introduced, and market confidence is insufficient; On the other hand, floods, earthquakes, and high temperatures in many northern regions have a significant impact on market demand.

Hot rolled plate and coil: On August 7th, the average price of 4.75mm hot rolled plate and coil in 24 major cities nationwide was 4029 yuan/ton, a decrease of 18 yuan/ton compared to the previous transaction. Due to the impact of factors such as typhoons and high temperatures on demand, the decline is greater, and the speed of heat accumulation is accelerating. With the improvement of meteorological disasters and the approaching peak season, it is expected that demand will recover slightly. However, if production remains at the current level, inventory may continue to increase in August. The significant impact on the news level is the real estate stimulus and pressure reduction, but the current stimulus still needs time to digest. With export orders falling and Tangshan Steel Plant resuming production, the North China market, which had the best performance in the early stages of hot rolling, is also weakening.

Cold rolled coil: On August 7th, the average price of 1.0mm cold coil in 24 major cities across the country was 4667 yuan/ton, a decrease of 4 yuan/ton compared to the previous trading day. On the 7th, the spot market prices were mostly stable, and traders reported average market demand. In addition, under the dual pressure of the traditional off-season, some merchants may increase their trading volume by secretly lowering prices. The overall trading performance during the day was decent. In terms of mentality, news of various level control measures has spread, and businesses are still primarily wait-and-see for the future market.

Medium thick plate: On August 7th, the average price of 20mm regular plate in 24 major cities across the country was 4143 yuan/ton, a decrease of 9 yuan/ton compared to the previous trading day. Although frequent policy news has boosted market confidence in the short term, given the lack of significant improvement in long-term sustained shipments, market sentiment has significantly cooled compared to the previous period. Controlling inventory levels and maintaining them at a relatively low level is the top priority for traders at present. Due to the impact of heavy rainfall in many parts of North China, outdoor operations and transportation have been hindered. Some warehouses are located in disaster stricken areas, resulting in slow entry and exit, and overall market liquidity is weak, resulting in limited demand.