Steel market price forecast on March 22

Rebar: On March 22, the average price of 20mm grade 3 rebar in 30 major cities across the country was 4,793 yuan/ton, an increase of 63 yuan/ton from the previous trading day. At present, the construction steel market is showing a pattern of both supply and demand. At the same time, the environmental protection in Tangshan area has become stricter last weekend, and the billet has risen sharply. The market mentality has improved. Steel mills may add to the flames and drive the market to rise. Therefore, the price of construction steel is expected to show an upward trend this week, and we must also guard against the possible callback risk caused by poor transactions in high-level resources.

Hot-rolled coil: On March 22, the average price of 4.75mm hot-rolled coil in 24 major cities across the country was 5093 yuan/ton, an increase of 101 yuan/ton from the previous trading day. The spot market’s early quotations on the 22nd made up a substantial increase. After the rise, the market’s high transactions were generally high. Afternoon volatility, the spot transaction was weak, and the quotation gradually declined, but the transaction was still weak. After the current price rose rapidly, the terminal wait-and-see mood increased. The speculative demand at the price level dare not enter the market easily. In addition, the futures and cash are basically in a quilt state after the market rises. Some of the resources of the spot are basically locked. This increase is basically derived from the policy and emotional side. There is no significant change in the fundamentals of the industry, and short-term prices may remain high and fluctuating, and we need to be alert to the risk of chasing high.

Cold rolled coil: On March 22, the average price of 1.0mm cold coil in 24 major cities across the country was 5719 yuan/ton, an increase of 64 yuan/ton from the previous trading day. From a fundamental point of view, the price is at a relatively historical high, and traders report that the downstream demand is not performing well. Affected by the Tangshan production restriction policy during the weekend, the steel market has strong bullish sentiment, and cold-rolled varieties have risen overall. After most of the market quotations have been raised, market transactions have slowed down significantly, and transactions in the trade link have been given certain preferential treatment to stimulate transactions. On the whole, domestic cold rolled prices fluctuated on the 23rd.

Plate: On March 22, the average price of 20mm general plate in 24 major cities across the country was 5,088 yuan/ton, an increase of 93 yuan/ton from the previous trading day. The spot market rose rapidly in the early trading on the 22nd, but the excessively rising prices did not bring many transactions, and most downstream were mainly wait-and-see. As the market of raw materials in the afternoon led to a decline in the market of finished material futures, market transactions became more deserted. In terms of steel mills, on the 22nd, a single major steel mill negotiated a price increase, with a range of 50-120 yuan/ton. The steel mills have a strong sentiment, but the willingness to order in the circulation link is low and the risk is greater. In terms of demand, the current downstream demand is acceptable and the resilience is sufficient, but the procurement schedule will be adjusted in consideration of factors such as high prices.