October 28, 2020 steel market price forecast

Rebar: On October 27, the average price of 20mm third-class rebar in 25 major cities in China was 3,818 yuan/ton, flat compared with the previous trading day. Yesterday, the overall downstream purchase demand was ok, but most merchants feedback that the market speculative demand is relatively weak, the overall transaction volume is difficult to see. In terms of steel mills, the production of construction steel is still at a relatively high level, while the price of raw materials remains high and the cost of steel making in steel mills is high, which forms a certain support for the price of construction steel. Resources, the current steel mills and market inventory continues to digest, the overall inventory pressure has decreased. In conclusion, the short - term domestic construction steel prices or narrow - range shock operation.

Hot rolled coil: On October 27, the average price of 4.75mm hot rolled coil in 24 major cities in China was 3918 yuan/ton, which was flat compared with the previous trading day. Yesterday black commodity futures market concussion up, the spot market wait-and-see mood is stronger, merchants offer to maintain stability mainly, some cities small shock, the overall market transaction general. At present, the downstream terminals are basically purchased on demand, and the speculative demands are mostly held in a wait-and-see attitude. The transaction of low-price resources is ok, but the transaction of high-price resources is rather weak. Merchants are cautious and wait-and-see attitude, operation is still dominated by shipping, short - term market pressure is not big, but the long-term pessimistic. In summary, it is expected that today's hot rolled coil prices to maintain a volatile operation.

Cold rolled coil: On October 27, the average price of 1.0mm cold rolled coil in 24 major cities in China was 4719 yuan/ton, down 2 yuan/ton compared with the previous trading day. Futures volatility yesterday, hot spot market stability, cautious optimism market sentiment. From the fundamental point of view, the price difference between hot and cold is still at a high level. According to the feedback from the steel mills, the current production schedule is ok, and the resources sent to south China increased in November. In the short term, due to low inventory pressure, some specifications and even out of stock, it is considered that cold rolling can still run high consolidation. In summary, today's domestic cold rolling price weak stable operation.