Steel prices continued to rise in early June

This week, domestic steel prices showed signs of weakness after surging last weekend. The wait-and-see sentiment in the steel market has increased significantly. The news of production restrictions nearing the weekend is on the rise. The positive news of the 300 billion yuan reverse repurchase released by the People's Bank of China has released liquidity, and the market speculation atmosphere has increased. As a result, steel prices showed a trend of restraining first and then rising. The transaction has also improved, and some areas are reluctant to sell.

As of May 29, 2020, the comprehensive steel price index reached 141.3 points, down 0.34% from last weekend and 8.32% from last year; the long product price index reached 152.6 points, down 0.58% from last weekend and 9.25% from the same period last year ; The plate price index reached 130.2 points, a decrease of 0.12% from last weekend and a decrease of 7.41% from the same period last year.

In terms of specific spot prices, according to monitoring data, as of May 29, the average price of Φ25mm tertiary rebar in 10 major domestic cities was 3704 yuan, down 12 yuan from last weekend and up 161 yuan from the same period last month. As of May 29, the average price of the Φ6.5mm and HPB300 high-line in 10 major domestic cities was 3955 yuan, down 16 yuan from last weekend and up 129 yuan from the same period last month.

The monitoring data shows that as of May 29, the social stock of construction steel in 29 key cities across the country reached 9.386 million tons, a decrease of 451,100 tons from the last weekend, a range of 4.62%, a decrease of 17.92% from the same period last month, and a year-on-year decrease 53.54% higher.

At present, the market rhythm has temporarily changed, and steel prices are still likely to rise, but there is limited room for continued upward movement. It cannot be ruled out that there may be a possibility of surging and falling in certain time periods.