Steel futures have plunged. Will steel spot prices continue to rise next week?

On September 4, the domestic steel market price consolidated and weakened. Tangshan billet fell 10 yuan to 3480 yuan/ton. The black futures market plunged significantly last night, coupled with the continued decline today, market sentiment was weak, and transactions slowed down. The main closing price of snails 3754 fell 1.08%, broke through the 5-day moving average and touched the 10-day moving average. DIF moved downwards away from DEA, and the third-line RSI indicator was located at 51-58, falling near the middle track of the Bollinger Band.

The U.S. stock market plummeted last night, the Nasdaq fell nearly 5%, and the European stocks closed down across the board. At the same time, the U.S. index continued to rise, suppressing U.S. dollar-denominated commodities and falling one after another. The steel futures prices in the night trading dropped significantly, and the market mentality tended to be cautious. In the morning, domestic steel prices were mainly stable. The transaction of high-priced resources in the market has slowed down. At present, most regions have sufficient threaded spot resources, and steel inventories are still relatively high year-on-year.

According to data from the China Iron and Steel Association, in late August, the key statistics of steel companies were 23.762 million tons of crude steel, 21.185 million tons of pig iron, 24.129 million tons of steel and 3.5701 million tons of coke.

Since the beginning of this year, the output of crude steel and steel products has continued to hit a record high. Although the increase in production in the off-season has slowed down, with the release of demand, profits have rebounded, and the motivation for increasing production has increased. We need to pay attention to the implementation and implementation of the autumn production restriction policy.

Affected by the external market, the black futures market fell sharply today, driving the spot market price to weaken slightly, the market trading sentiment was cautious, and the trading volume was also lower than expected. On the whole, output continues to remain high, with a limited decline, and steel mills have little intention to actively reduce production. Steel mill inventories have moved forward to social inventories by a large margin, and then steel mill inventories have decreased while social inventories have continued to increase. However, the pace of purchases by traders and the pace of terminal inventory has risen slightly, coupled with strong raw material costs, and expectations for peak season demand, it is expected that the short-term steel market prices will consolidate at a high level.