Steel market price forecast on February 4

Rebar: On February 3, the average price of 20mm grade 3 rebar in major cities across the country was 4,356 yuan/ton, down 2 yuan/ton from the previous trading day. Yesterday, the price of construction steel in most areas in China was mainly stable, while prices in some parts of North China dropped slightly. In terms of steel mills, blast furnace steel plants have increased their overhauls and reduced production, electric furnace steel plants have been on holidays one after another, and construction steel output has continued to decline. In summary, under the two weaknesses of supply and demand, domestic construction steel prices are expected to consolidate within a narrow range in the short term.

Hot-rolled coils: On February 3, the average price of 4.75mm hot-rolled coils in major cities across the country was 4487 yuan/ton, down 5 yuan/ton from the previous trading day. From a regional perspective, prices in East China and North China have fluctuated, while prices in Southwest China have fallen sharply, while prices in other regions have temporarily stabilized. Yesterday, the spot market's early quotations rose slightly. After the rise, the market transactions were light. The poor transactions in the afternoon caused some spot merchants to lower their quotations. The market was basically closed recently, and terminal purchases were almost non-existent. However, what is different from previous years is that there are many kinds of merchant inventory this year. Low, basically clearing the Chinese New Year, leading to speculative replenishment demand from merchants after the price drop in the last few days, but it is expected that the market will be closed next week and passive winter storage will officially begin.

Cold-rolled coils: On February 3, the average price of 1.0mm cold-rolled coils in major cities across the country was 5,391 yuan/ton, down 7 yuan/ton from the previous trading day, of which the Shanghai price was 5360 yuan/ton and the Lecong price 5220 yuan/ton, Tianjin price is 5160 yuan/ton, overall shipment deviation. From a regional perspective, Shanghai, Beijing, and Tianjin fell 10-50 yuan/ton, while prices in other markets stabilized. Yesterday, the hot roll spot price dropped slightly, and the market sentiment was cautious. From the perspective of the fundamentals of cold rolling, merchants have basically entered the holiday stage, and the downstream has closed early. In terms of transactions, the market has only sporadic transactions. On the whole, today's domestic cold-rolled prices fluctuate mainly.

Plate: On February 3, the average price of 20mm ordinary plate in major cities across the country was 4,515 yuan/ton, which was stable compared to the previous trading day. Among them, prices in Shanghai, Hangzhou, Guangzhou, Changsha, Wuhan, Tianjin, and Chongqing remained stable, while prices in Nanjing, Fuzhou, Shenyang, Chengdu and other places fell slightly by 10-30 yuan/ton. In terms of the market, due to the fact that some downstream and traders have left the market one after another, although spot quotations are still available, but due to the weakening of actual purchase demand and the impact of workers and drivers returning to their hometowns, market transactions have been bleak throughout the day. In terms of mentality, as the Spring Festival approaches, some merchants will focus on repayment, and supported by factory costs, market quotations have not changed much in recent days. On the whole, as demand continues to weaken, the price of plate is expected to remain consolidating today.