Steel market prices on April 18, 2022

Construction steel: On April 18, the average price of 20mm grade 3 seismic rebar in 31 major cities across the country was 5,116 yuan/ton, up 1 yuan/ton from the previous trading day. Due to reasons such as transportation and raw materials, some long-process steel mills have begun to actively control production, and there is little short-term supply pressure. The raw material side continued to be strong, coke rose, and the prices of iron ore and scrap steel still supported the cost side. In addition, the macro side has continued to release positive signals recently, such as GDP growth exceeding expectations, so the macro side continues to be neutral.

Hot-rolled coil: On April 18, the average price of 4.75mm hot-rolled coil in 24 major cities across the country was 5,276 yuan/ton, down 9 yuan/ton from the previous trading day. The outbreak of the epidemic in many parts of the country has led to a decline in downstream demand, and logistics in some areas have been blocked. From the perspective of supply, the epidemic has slowed down the supply of hot coils, so in the short term, both supply and demand are weak. Now that we have entered the traditional demand season, the rebound of the epidemic may have a negative impact.

Cold-rolled coil: On April 18, the average price of 1.0mm cold coil in 24 major cities across the country was 5,720 yuan/ton, down 1 yuan/ton from the previous trading day. At present, the price in the northern market is still at a high level, the price difference of cold rolling between North China and South China is 40 yuan/ton, and the price difference between northwest and southwest cold rolling is 100 yuan/ton. According to the feedback from traders in North China, some mainstream steel mills have received more resources recently, the market quotation is chaotic, the steel mill's order date is approaching, and the capital pressure is great. Affected by the epidemic, the operating rate of most downstream terminal enterprises is low, the procurement demand is weak, and the overall market transaction is poor.

Medium and heavy plate: On April 18, the average price of 20mm common plate in 24 major cities across the country was 5,329 yuan/ton, an increase of 1 yuan/ton from the previous trading day. At present, the profit of long-process steel mills is only about 100 yuan per ton, and the phenomenon of production reduction caused by the loss of billet adjustment enterprises is more obvious. Due to the impact of the epidemic, the shipment of steel mills has declined significantly, and the factory warehouse has rebounded to a greater extent. The control of northern ports has been relaxed compared with the previous period, and northern resources have recently arrived in East China and other places, but the total amount is not large, mainly low-alloy plates, and today they began to be closed and controlled. In terms of demand, the impact of the epidemic on the downstream terminals in East China is relatively obvious. The demand in Shanghai is stagnant. The southern Jiangsu area near Shanghai is subject to stricter traffic control, and the transportation capacity has dropped significantly, which makes it difficult to purchase in large quantities even when there are orders in the downstream.