The financial market has been volatile recently, and short-term steel prices have fluctuated

On August 7, the domestic steel market prices went up and down, and Tangshan billet was lowered by 20 to 3440 yuan/ton. Today's snails are weakly adjusted, and the market wait-and-see sentiment spread. In the morning, most domestic market prices consolidated within a narrow range. Most businesses reported that speculative demand in the market was sluggish, and downstream procurement demand also slowed down. The black futures market was volatile. The main closing price of snails was 3832, down 0.60%. After a few days of rising, the main iron ore futures fell 1.05% today.

Today's steel futures prices were weakly adjusted, and the market wait-and-see sentiment spread. In the morning, most domestic steel market prices consolidated within a narrow range. From the perspective of transactions, most steel trade merchants reported that speculative demand in the market was sluggish, and downstream procurement demand also slowed down. In terms of resources, the current steel mills and market steel stocks continue to digest, but they are still relatively high year-on-year. On the whole, this week’s construction steel prices have risen at a faster rate and by a large margin. The high-priced resources in the steel market need time to digest, and market transactions have slowed down.

According to the China Iron and Steel Association data, in late July 2020, the key statistics of steel enterprises are 23,896,600 tons of crude steel, 21.226,500 tons of pig iron, 23,979,300 tons of steel, and 3.6274 million tons of coke. In terms of average daily output, pig iron, crude steel, and steel all rose month-on-month. Crude steel was 2,172,400 tons, up 1.59% month-on-month and 11.65% year-on-year; pig iron was 1,929,700 tons, up 1.07% month-on-month, and 12.94% year-on-year; steel was 2,179,900 tons, up 6.89% month-on-month and 10.78% year-on-year.

It is worth noting that the key statistics of steel companies’ steel stocks amounted to 13,131,400 tons, a decrease of 1,250,400 tons or 8.69% from the previous ten-day period; a decrease of 490,000 tons or 3.59% from the end of June; an increase of 3.5989 million tons from the beginning of the year. An increase of 37.75%. It reflects that although the factory and warehouse are under pressure, the month-on-month decline has shown that the pressure on the warehouse has slowed.

With the escalation of the US "net net" operation, the tensions between China and the United States have attracted attention again. Futures have continued to rise and the rise has been weak. Today’s shocks and decline, the lack of favorable news in the market, is approaching the weekend, spot traders purchase on demand, and the steel market waits and sees The mood is strong.

Investigation of 247 steel plants blast furnace ironmaking capacity utilization rate was 94.75%, a month-on-month increase of 0.25% and a year-on-year increase of 6.82%. The 71 electric arc furnace steel plants across the country have an average operating rate of 71.09%, a decrease of 1.56% compared with last week and a decrease of 3.15% compared with last year.

High temperature affects the supply of scrap steel. As scrap prices continue to rise, independent electric furnace steel mills have different production. Some steel mills with outdated production processes actively cut production and reduce the number of equipment production. Some demand resumes in areas where the price of finished products has risen quickly, and equipment technology Advanced steel mills resume production.

Overall, according to the survey, steel production decreased slightly this week, while demand has improved, and inventory has stopped rising and falling, supporting steel prices. Looking ahead: First of all, the output of steel mills is expected to change little. Secondly, if speculative demand is not considered, the actual downstream demand recovery in August is not strong, and demand will be unstable after the rise in steel prices this week. The fundamentals of supply and demand in the later period may be in a weak balance pattern. It is worth noting that under the disturbance of macro funds, the recent financial market fluctuates sharply. Steel prices may fluctuate in the short term, and it is not appropriate to chase the rise and fall.