Steel price in the market on January 8, 2024

Screw thread steel: On January 8th, the average price of 20mm three-level seismic resistant screw thread steel in 31 major cities across the country was 4063 yuan/ton, a decrease of 20 yuan/ton from the previous trading day. In the short term, although the production of rebar has recently fallen and the demand for surface steel has rebounded, the market is in a stage of accumulation. The supply and demand fundamentals are weak, and at the same time, the recent loosening of raw material prices has weakened cost support.

Hot rolled coil: On January 8th, the average price of 4.75mm hot rolled coil in 24 major cities nationwide was 4095 yuan/ton, a decrease of 14 yuan/ton from the previous trading day. Overall, spot steel transactions have fallen, coupled with a weak commodity market atmosphere, leading to a pullback in both futures and spot prices. The recent environmental warning has been lifted, and steel mills that were previously shut down due to environmental protection have gradually resumed production, which has had a certain impact on the start-up and supply increase of blast furnaces. However, the annual maintenance and production reduction of new steel mills will increase, which will limit the space for the recovery of finished product production in the future. From a demand perspective, the demand for hot coil terminals will enter a period of weak month on month before the Spring Festival. Currently, the supply and demand of finished products are weak, and traders have a lower willingness to store in winter, mainly passive winter storage.

Cold rolled coil: On January 8th, the average price of 1.0mm cold coil in 24 major cities across the country was 4763 yuan/ton, a decrease of 4 yuan/ton from the previous transaction. According to feedback from some traders in East China, the current spot prices in the market are close to the settlement prices of steel mills, and the profit margins of traders are narrow. Some traders even have an inverted phenomenon. In terms of transactions, downstream enterprises have received average orders recently, with dismal weekend transactions. Some traders have lowered prices to ship goods, but market demand is average, and overall transactions within the day are weak. In terms of mentality, the current willingness of traders to store in winter is not strong, and market transactions are average. They are still cautious and cautious about the future market.

Medium thick plate: On January 8th, the average price of 20mm regular plate in 24 major cities across the country was 4124 yuan/ton, a decrease of 9 yuan/ton from the previous trading day. On the 8th, black futures fluctuated downward, and the trading volume in the national medium board market was lower than last Friday, indicating average market purchasing enthusiasm. Taking East China as an example, traders still have a mentality of raising prices in the morning, but due to the disturbance of futures, there are frequent hidden resource drops. In the afternoon, the general market fell by 20 yuan/ton, with fewer low alloy resources and stronger resistance to falling. From the perspective of supply, the annual maintenance and production reduction of steel mills has increased, coupled with the recent significant expansion of steel billet losses, leading to a continued decline in the supply side. In terms of mentality, although the fundamentals are still good at present, the market has been weak for several consecutive working days, making it difficult for prices to remain firm. Traders have reduced their bullish sentiment towards the future market.