Steel price on June 26, 2023

Building steel: On June 26th, the average price of 20mm Grade III seismic resistant threaded steel in 31 major cities across the country was 3801 yuan/ton, a decrease of 28 yuan/ton compared to the previous trading day. From a fundamental perspective, the current market demand is greatly influenced by seasonal factors, and the off-season characteristics are becoming increasingly evident; From a supply side perspective, with the expansion of steel mill profits, steel mills that were shut down for maintenance in the early stages have some motivation to resume production. At the same time, the price of dual focus has recently returned to a weak position, and the support of steel spot on the cost side is weak. In addition, with the recent escalation of overseas risk events, there is still some risk aversion towards commodities.

Hot rolled plate and coil: On June 26th, the average price of 4.75mm hot rolled plate and coil in 24 major cities nationwide was 3857 yuan/ton, a decrease of 23 yuan/ton compared to the previous trading day. During the Dragon Boat Festival holiday, overseas macro risks increased, domestic real estate and infrastructure were not directly stimulated by good news, the market's optimistic speculation about policy expectations began to slow down, and the transaction logic turned back to weak fundamentals. From the perspective of demand, it is currently in the off-season of demand, with more precipitation in the south. High temperature weather has affected downstream construction, and export orders have decreased in April and May, further accumulating supply-demand contradictions. From the perspective of raw materials, the profits of steel mills have improved, but overall industry confidence is insufficient. Iron ore still has support, but the supply pressure on the coal side is increasing, prices are rebounding and stalling. The first round of increase for coke companies is not smooth, and overall support for the cost side is weak.

Cold rolled coil: On June 26th, the average price of 1.0mm cold coil in 24 major cities across the country was 4483 yuan/ton, a decrease of 9 yuan/ton compared to the previous trading day. On the 26th, black commodity futures fluctuated downward, and market sentiment was relatively pessimistic. From the market's understanding, traders are very cautious in their operations, with the market secretly lowering shipments and mainly withdrawing funds. In addition, I have recently learned from some merchants who directly supply terminals that the payment collection speed is very slow towards the end of the month, and the financial pressure has increased.

Medium thick plate: On June 26th, the average price of 20mm regular plate in 24 major cities across the country was 4105 yuan/ton, a decrease of 14 yuan/ton compared to the previous trading day. According to traders' feedback, the market is still in the off-season, coupled with weak futures trends and cautious downstream purchasing sentiment. The market transaction performance is slightly weak, and it is estimated that spot prices will continue to adjust weakly in the near future. In terms of circulation, the main reason for the accumulation of inventory in the mainstream market is the increase in arrival volume, especially low alloy resources. In addition, the recent production reduction of rolling stock enterprises has led to a decrease in the circulation volume of ordinary plates, and the price difference between low alloy and ordinary plates has also narrowed simultaneously; Overall, the market supply continues to release, and resource shipments bear certain pressure.