Steel market price forecast on January 6

Rebar: On January 5, the average price of 20mm grade 3 rebar in 25 major cities across the country was RMB 4422/ton, an increase of RMB 20/ton from the previous trading day. In terms of transactions, snails fluctuated at a high level yesterday. After the spot price rose, downstream purchases increased. Businesses in most regions reported that the transaction situation was generally normal. The actual transaction prices in Hangzhou and Shanghai were negotiable in the afternoon. In the short term, the increase in the supply of rebar is limited, and the demand side is under pressure. Merchants are cautious. The current operation is mainly to actively reduce the warehouse to avoid risks. On the whole, it is expected that today's construction steel prices will continue to fluctuate at a high level.

Hot-rolled coils: On January 5, the average price of 4.75mm hot-rolled coils in 24 major cities across the country was 4,616 yuan/ton, an increase of 5 yuan/ton from the previous trading day. The spot market quotations rose steadily and slightly in the morning yesterday, but the market demand was relatively weak and the overall transaction was poor. In the afternoon, the spot market mentality was weak, and some market prices fell slightly. At present, downstream users have a strong wait-and-see sentiment, and they basically purchase on-demand. Market transactions are difficult to release significantly, and merchants still focus on shipping. However, the current market inventory accumulation is slow, coupled with the higher cost of resources in the later period, merchants are unwilling to sell too low. On the whole, it is expected that today's hot-rolled coil prices will continue to fluctuate.

Cold rolled coil: On January 5, the average price of 1.0mm cold coil in 24 major cities across the country was 5704 yuan/ton, down 11 yuan/ton from the previous trading day. From the perspective of cold-rolling fundamentals, the current cold-rolling price has been at a historically high level, and the profits of the existing inventory resources in the trade link are still acceptable. The current preferred strategy is to reduce the price and return the funds. In terms of demand, the market has fallen behind rapidly in the recent period, which was suppressed in the early stage. Demand has been released to a certain extent, and the willingness of downstream purchases has improved significantly; in terms of steel mills, orders are acceptable, and the price is relatively strong. On the whole, today's domestic cold-rolled prices are stable but weak.