After a round of ups and downs, domestic spot steel prices have entered the rising channel for the second consecutive week. The contraction of cost and output is the supporting factor, but the demand is still insufficient. Imported iron ore prices are ups and downs, and no staged price positioning has yet been found.
According to the latest market report provided by the well-known steel information agency “My Steel”, the domestic spot steel price index closed at 124.03 points in the most recent week, up 4.59% in the week. Market participants said that after a round of "rising-return" "roller coaster", the price of steel has risen for two consecutive weeks. Steel futures performed strongly, and spot steel prices were positively rising. Although the market transactions were heavy, the terminal demand was still weak, and the follow-up efforts were worrying. However, steel costs are still supporting, and mainstream mills continue to rise in factory prices for December. In addition, some areas in China are undergoing environmental supervision, and steel output will be suppressed. These factors will have certain upward thrust on the steel market.
According to analysis, in the construction steel market, prices have risen sharply. The price of Shanghai, Hangzhou, Hefei and other places rose by 30 yuan to 290 yuan a week. From the specific market dynamics in Shanghai and other places, we can see that although the price has generally increased, there have been ups and downs. At the beginning of the week, the market rose sharply, but in the case of rapid contraction, prices have fallen. However, the news that the illegal production capacity in some areas was subsequently investigated has become a hot spot in the market. The market expects the supply reduction to increase, and the price reappears.
In the board market, prices have risen significantly. The price of hot-rolled coils has risen sharply. The price of tons in Shanghai, Jinan and Guangzhou has risen by 20 yuan to 280 yuan a week. In the Beijing-Tianjin-Hebei market, the biggest one-ton price increase in a single day exceeded 100 yuan. The price of plate is also rising sharply. The price of tons in Shanghai, Wuhan, Beijing, Tianjin and Hebei has risen by 50 yuan to 300 yuan a week. Overall, the market mentality is acceptable, but in East China, some businesses are already adjusting their pace in ordering purchases.
Imported ore prices in the iron ore market have fluctuated sharply. According to the latest report, in the domestic mining market, the price of iron concentrate in Hebei Province has remained basically stable, the enthusiasm of steel mills has declined, and the wait-and-see atmosphere of the mining city has increased. The price of imported minerals fluctuated widely. At the beginning of the week, it rushed to 81.65 US dollars per ton, hitting a new high in the past two years. However, it began to fall rapidly in the middle of the week and only rose sharply on the weekend, hitting the US$80 mark per ton. As of the 1st, the 62% grade iron ore index closed at $79.1 per ton, down $1.25 a week. Recently, the domestic production capacity and environmental protection efforts have once again increased, the operating rate of steel mills has declined, and the demand for iron ore has also declined.
Relevant institutions believe that the current domestic steel market is intertwined. After the steel price rises to a high level, the trend begins to look entangled, and the market mentality tends to be cautious. In the short term, steel prices will be dominated by high shocks.