Steel spot market on January 17, 2022

Construction steel: on January 17, the average price of 20mm grade III seismic deformed steel bars in 31 major cities in China was 4783 yuan / ton, unchanged from the previous trading day. Due to the sharp decline of futures snails, the trading atmosphere in the spot market is cold and the terminal procurement is poor. In the short term, driven by the futures snail last week, the spot price has rebounded significantly from the previous low. Although the cost of steel mills has strong support for prices, the slowdown in demand and the recovery of inventory still have a certain impact on market sentiment. At the same time, affected by the epidemic situation, some construction workers in most areas have returned home in advance, and the market demand will decline further.

Hot rolled coil: on January 17, the average price of 4.75mm hot rolled coil in 24 major cities in China was 4845 yuan / ton, down 19 yuan / ton compared with the previous trading day. The recent continuous positive policies have been basically digested, and the overall rising power of the black system is exhausted. At the same time, the actual terminal demand is weak. In addition, most steel enterprises are not willing to trade in winter storage, and the price is lack of rising power.

Cold rolled coil: on January 17, the average price of 1.0mm cold coil in 24 major cities in China was 5450 yuan / ton, down 11 yuan / ton compared with the previous trading day. According to the feedback from traders, as the Spring Festival approaches, some downstream purchases show an overall downward trend, and the market trading sentiment is weak. Merchants with high inventory in a few areas secretly drop shipments, and the cashing sentiment is getting stronger and stronger, focusing on maintaining shipments. In the downstream, it purchases more on demand and has low willingness to prepare goods.

Medium and heavy plate: on January 17, the average price of 20mm ordinary plate in 24 major cities in China was 5025 yuan / ton, down 10 yuan / ton compared with the previous trading day. From the perspective of supply, the fluctuation range of medium plate output in the near future is small, but considering that it is close to the Spring Festival and will start in late October, some steel mills will begin to enter the centralized maintenance period, and the output is expected to decline before the festival. In terms of circulation, as the price of the medium plate has been suppressed to a relatively safe price, the profit of the superimposed medium plate factory has narrowed significantly, the production plan will be adjusted in the later stage, and the output of the common plate will decline in the future. Therefore, some traders began to build positions at a low level last week. In terms of demand, most downstream enterprises and some warehousing and logistics enterprises began to have holidays this week, and the procurement of raw materials will also slow down. It is expected that the demand will continue to show an inertial downward trend years ago.