Steel spot market on November 22

Construction Steel: On November 22, the average price of 20mm Class III seismic rebar in 31 major cities across the country was 4754 yuan/ton, an increase of 38 yuan/ton from the previous trading day. Specifically, driven by the rise in futures and the rise in the spot market over the weekend, the domestic construction steel prices fluctuated strongly in the morning. From the perspective of transactions, snails fluctuated at a high level in the late afternoon, and the spot market in some areas fell slightly. The performance of low transactions was acceptable, and the high transactions were average. 

Hot-rolled coil: On November 22, the average price of 4.75mm hot-rolled coil in 24 major cities across the country was 4,761 yuan/ton, an increase of 32 yuan/ton from the previous trading day. From the perspective of supply, the heating season is restricted in many places, and the steel companies in Handan and Tangshan regions have imposed stricter production restrictions. In addition, companies are not motivated to make loss-making production, and the willingness to limit production and stabilize prices has increased. Steel production will remain low. In terms of demand, despite news of real estate and loan easing in the domestic market, there is still a lack of substantive policy benefits, and there is insufficient motivation to continue marginal improvement. It is expected that short-term hot-rolled coil prices may rebound slightly, but there is still room for long-term downward pressure.

Cold rolled coil: On November 22, the average price of 1.0mm cold coil in 24 major cities across the country was 5528 yuan/ton, down 14 yuan/ton from the previous trading day. The cold-rolled spot market was raised in some areas in the morning, and the spot market was weakly supported in the afternoon as the disk surface fell, and the price fell. In terms of transactions, transactions in markets such as Shanghai, Tianjin, and Guangzhou are still weak. The high-priced resources in the previous period have basically been sold out. The pressure of new orders is still acceptable. Most of them are still operating at low prices, and sentiment remains pessimistic.

Plate: On November 22, the average price of 20mm common plate in 24 major cities across the country was 5,128 yuan/ton, an increase of 22 yuan/ton from the previous trading day. At the supply level, due to the limited production of northern steel mills, output continues to remain low. However, with the end of this round of inspections and the current profit of medium plate varieties is relatively better than other varieties, it is expected that future supply may show a slow recovery situation. The current mentality collapse in the circulation link is the main reason for the mid-market to make up for the decline. The prices of lock-up orders of steel mills have been lowered one after another to grab orders, but orders are still scarce. In addition, from the perspective of cost, if the slab price drops again, the cost of billet adjustment enterprises will continue to fall, the common plate will continue to be under pressure, and the low-alloy-common plate price gap will continue to expand.