Steel market prices on June 7, 2022

Construction steel: On June 7, the average price of 20mm grade 3 seismic rebar in 31 major cities across the country was 4,839 yuan/ton, down 15 yuan/ton from the previous trading day. Three days after the college entrance examination, some construction sites were shut down, roads were blocked, and the overall demand was weak. Overlaid with the influence of rainy weather in the southern region, the overall demand is still weak.

Hot-rolled coil: On June 7, the average price of 4.75mm hot-rolled coil in 24 major cities across the country was 4,911 yuan/ton, down 11 yuan/ton from the previous trading day. At present, some steel mills in the country have begun to have maintenance plans, and the factory warehouse may continue to be transferred to the social warehouse. The overall inventory pressure in the market has eased, which has a certain effect on prices. At the same time, under the circumstance that the national policy is constantly stimulating, businesses are more optimistic about the market outlook. It is expected that the hot-rolled coil market may be dominated by shocks in the future.

Cold-rolled coil: On June 7, the average price of 1.0mm cold coil in 24 major cities across the country was 5,442 yuan/ton, down 5 yuan/ton from the previous trading day. With the weak operation of the black futures night market yesterday, the spot market quotations were mainly stable in the morning today, and some markets rose slightly. Mainly, the overall transaction performance is average today. In terms of mentality, it is reported that Shanghai has been unblocked, and resources can gradually be circulated to surrounding markets. Some businesses have reported that the market is under great pressure from competition. In addition to the low season of steel demand, the market sentiment is not optimistic, and the mentality is cautious and pessimistic.

Medium and heavy plate: On June 7, the average price of 20mm common plate in 24 major cities across the country was 5,126 yuan/ton, down 2 yuan/ton from the previous trading day. From the perspective of the supply side, the production rhythm of the current medium and long process steel enterprises is normal. Due to the drop in the slab price in the early stage, the production cost of the slab adjustment enterprises has been lowered, the profits have expanded, and the production enthusiasm has been relatively high. In terms of circulation, according to feedback from traders, this year's inventory has remained high. In the first half of the year, the inventory has not been effectively removed and the accumulation is obvious. The merchants' mentality is slightly pessimistic. In addition, the uncertainty of demand recovery expectations is mainly based on the return of funds. With the improvement of the national epidemic situation, the marginal market demand is expected to show a repairing rebound. However, in the context of the off-season, the concentrated release of market demand may be limited, and the pace of recovery is lagging behind, suppressing the rate of price increase, and we still need to pay attention to downstream demand in the later stage.