Steel prices on March 29, 2022

Construction steel: On March 29, the average price of 20mm grade 3 seismic rebar in 31 major cities across the country was 5,064 yuan/ton, up 22 yuan/ton from the previous trading day. Specifically, in the morning, the high level of snails weakened, and most of the domestic construction steel prices continued to rise, and some of them remained stable. In the morning, the performance of speculation and terminal demand was average, and the transaction was not good after the rise, and the high-level shipment was not smooth. In the short term, although the epidemic prevention and control in some areas has gradually eased recently, the current market is still in a state of strong expectations and weak reality, and the demand for epidemic suppression will appear as a small outbreak with the adjustment of epidemic prevention policies. At the same time, as the Qingming Festival is approaching, the possibility of stocking up before the holiday cannot be ruled out, but it is also necessary to prevent the impact of rainy weather on terminal demand.

Hot-rolled coil: On March 29, the average price of 4.75mm hot-rolled coil in 24 major cities across the country was 5,279 yuan/ton, down 5 yuan/ton from the previous trading day. Currently affected by the epidemic, both upstream and downstream production demand are limited, showing a pattern of weak supply and demand, and the market volatility is small, but the market believes that the demand will be delayed in a counter-cyclical situation. Most of the market is bullish in the later period, and the willingness to support the price is obvious. It is believed that the market demand may usher in a centralized release after the epidemic gradually eases.

Cold-rolled coil: On March 29, the average price of 1.0mm cold coil in 24 major cities across the country was 5,694 yuan/ton, up 4 yuan/ton from the previous trading day. The spot market is still affected by the epidemic and transportation. The operating rate of downstream terminal enterprises is generally low, the purchase demand is weakened, and the market transaction is weak; some merchants choose to secretly reduce shipments, mainly to reduce inventory and return funds. In terms of inventory, some markets were affected by the epidemic, transportation was blocked, resource circulation was restricted, the speed of steel mill resources arriving at the warehouse slowed down, and the market inventory declined. In terms of mentality, prices have risen continuously recently, but there is no actual transaction support, and traders are more pessimistic.

Medium and heavy plate: On March 29, the average price of 20mm common plate in 24 major cities across the country was 5,293 yuan/ton, an increase of 4 yuan/ton from the previous trading day. In terms of supply, the production of steel enterprises has recovered, but due to the outbreak of the epidemic in Hebei, the production recovery rate has slowed down. Due to the sudden outbreak of the epidemic in the north, if the transportation is not improved in the later period, the market arrival resources will be blocked. In order to maintain sufficient inventory, the downstream terminal will have a centralized replenishment expectation, and the demand will be released.