Steel price on September 5, 2023

Building steel: On September 4th, the average price of 20mm Grade III seismic resistant threaded steel in 31 major cities across the country was 3839 yuan/ton, an increase of 35 yuan/ton compared to the previous trading day. The recent loosening of real estate policies has had an unexpected impact, and the market is expected to further repair the demand for steel. At the same time, there is still an expectation of a reduction in crude steel production, which has some support for steel prices.

Cold rolled sheet coil: On September 4th, the average price of 1.0mm cold coil in 24 major cities across the country was 4707 yuan/ton, an increase of 18 yuan/ton compared to the previous trading day. On the 4th, the black futures market slightly increased, and spot prices in various markets mostly rose. According to feedback from some traders, there are currently not many resources in hand and there is not much inventory pressure. In addition, there is a shortage of specifications, which has led to price increases. In terms of transaction, the price has increased, but the actual demand has not yet risen. Downstream companies have started to replenish their inventory with goods in the early stages of the price increase, but their willingness to purchase goods is not strong now. The overall performance of transactions within the day is average.

Medium thick plate: On September 4th, the average price of 20mm regular plate in 24 major cities across the country was 4084 yuan/ton, an increase of 14 yuan/ton compared to the previous trading day. On the 4th, the futures market fluctuated upwards, with most cities showing strong willingness to raise prices, while some cities saw prices remain stable. However, traders reported average transactions throughout the day, and the market performance fell short of expectations. In terms of resource supply, with the recent strength of raw materials over finished products, steel mills' profits are about to shrink, and production may slightly decrease. However, the market's inventory consumption rate is not fast, and there will be no significant decrease in resource inventory in the short term. In terms of mentality, as we enter September, the market is gradually moving out of the traditional consumption off-season, and downstream demand is expected to rebound. There are expectations of a rising trend in the market, and the mentality of traders has improved, but they still maintain a cautious wait-and-see attitude.