Steel Market on August 9th

Construction Steel: On August 9, the average price of 20mm Class III seismic rebar in 31 major cities across the country was 5,322 yuan/ton, down 27 yuan/ton from the previous trading day. From the perspective of transactions, the decline in the futures market has led to poor sales in the spot market, less speculative demand, and a quiet trading atmosphere. At present, the spot market is still in a pattern of weak supply and demand in the near future, and the market attitude is cautious. After continuing to push up, the spot market experienced a correction due to insufficient demand follow-up.

Hot-rolled coils: On August 9, the average price of 4.75mm hot-rolled coils in 24 major cities across the country was 5,744 yuan/ton, down 36 yuan/ton from the previous trading day. Recently, the market fluctuates frequently and the market has a strong wait-and-see sentiment. Coupled with high order costs, merchants are willing to stand up for prices. However, the current low season for demand and weaker prices are within a reasonable range, so there is no need to panic too much. On the whole, it is expected that the market price may fluctuate in a weak position on the 10th.

Cold rolled coil: On August 9, the average price of 1.0mm cold coil in 24 major cities across the country was 6,500 yuan/ton, down 14 yuan/ton from the previous trading day. According to the feedback of cold-rolled merchants, the recent black system disk shocks have become weaker, and the emotional side is still empty. In some areas, the settlement in the first half of the year is still significantly higher than the market price. The transaction was weak. On the downstream side, low-load production is maintained in the short-term, and raw materials are mostly purchased on demand, and pressure on funds still exists. It is expected that on the 10th, domestic cold-rolled spot prices will fluctuate and run weakly.

Plate: On August 9th, the average price of 20mm general-purpose plates in 24 major cities across the country was 5,703 yuan/ton, down by 20 yuan/ton from the previous trading day. At the supply level, with the completion of some steel mills’ overhauls, the output rebounded last week, but steel mills will continue to join in overhauls for some time in the future. It is expected that output will remain at a slightly lower level than normal. In terms of circulation, as the futures market declines, market liquidity has deteriorated and speculative demand has weakened. On the other hand, the number of locked orders continued to decline due to strong prices in northern steel mills. In terms of demand, low-alloy demand remained stable, but large-volume purchases did not occur, demand for general plates was poor, and downstream orders were insufficient.