Steel market prices on June 20, 2022

Construction steel: On June 20, the average price of 20mm grade 3 seismic rebar in 31 major cities across the country was 4,352 yuan/ton, down 231 yuan/ton from the previous trading day. The sharp drop in the futures market has led to a sluggish market mentality, the emergence of low-priced resources, and the general enthusiasm for terminal purchases. In the short term, the current market demand recovery is still poor. Fortunately, some blast furnace steel plants have been shut down for maintenance in the near future. There is a certain reduction in supply, and the contradiction between supply and demand may improve.

Hot-rolled coil: On June 20, the average price of 4.75mm hot-rolled coil in 24 major cities across the country was 4,395 yuan/ton, down 267 yuan/ton from the previous trading day. The terminal demand is weak, and the market sentiment is pessimistic. The resumption of work and production did not bring about an effective recovery of terminal demand, the real estate data was weak, and the year-on-year decline in the newly started area in the first five months further expanded. The southern region has entered a high temperature and rainy season, and it is expected that demand will continue to be weak for some time to come. The price impact of raw materials due to the overhaul and production restriction of steel mills is too large, and coke and iron ore have declined. The steel mill coke increased by 300 yuan / ton, and the support for the price of finished products on the raw material side became weaker.

Cold-rolled coil: On June 20, the average price of 1.0mm cold coil in 24 major cities across the country was 5,056 yuan/ton, down 214 yuan/ton from the previous trading day. Businesses are more pessimistic about the market outlook, and downstream purchasing companies have insufficient orders. According to feedback from some market merchants, the market price has been falling for days, and the market transaction volume has been significantly reduced. However, the steel mill's resource arrival rate has not decreased, and the inventory pressure it faces will also follow. Considering the pressure on capital turnover, the bidding phenomenon among traders is fierce.

Medium and heavy plate: On June 20, the average price of 20mm common plate in 24 major cities across the country was 4,755 yuan/ton, down 230 yuan/ton from the previous trading day. From the perspective of supply, the pressure on the supply side of medium and heavy plates is still too high, and the output remains high. With the sharp drop in the price of this round, the order-locking business of steel mills has deteriorated rapidly, and the production cost of steel mills is relatively high in the short term. There is an expectation of production reduction, but the price difference between varieties needs to be observed in terms of strength. In terms of circulation, as prices weaken, merchants are pessimistic, coupled with the recent weak downstream demand, it is difficult for medium and heavy plate spot transactions to have heavy volume, and the mainstream distribution market has obvious price smashing. Although the price difference between East China and North China has advantages, the market outlook is expected to be extremely weak, inventory continues to accumulate, and speculative demand from merchants is weak. In terms of demand, downstream demand after the epidemic did not meet market expectations, and the main reason for the sharp drop in spot prices was the concentrated venting of the delayed demand, which forced steel mills to reduce production from bottom to top.