Although individual varieties have a slight drop in prices during a certain period of time, overall, domestic spot steel prices still maintain a rising trend. Iron ore prices are also rising, but ore inventory is also increasing.
According to the latest market report provided by the well-known steel information agency “My Steel”, the domestic spot steel price index closed at 128.26 points in the most recent week, up 3.41% over the week. Steel prices continue to rise. Although the prices of some spot varieties were once in a wait-and-see state, individual varieties even experienced a slight decline, but overall, the short-term market still has a bullish attitude.
According to analysis, prices continue to soar in the construction steel market. At present, the average ton price of domestic HRB400 material 20mm rebar is RMB 3,408, which is RMB 130 a week. The average price per ton of HPB300 material 8mm is RMB 3459, which is RMB 132 a week. East China and Central China topped the list. Specifically, at present, the investigation and investigation of illegal production capacity is continuing in various places. In some regions, illegal mid-frequency furnace plants have ceased production and the market supply has begun to decrease. At the same time, the main types of rebar in the steel futures market have reached new heights. , Spot steel prices will continue to rise, but the demand side of the volume is actually not too optimistic.
In the plate market, prices have also risen sharply. The price of hot-rolled coils continued to increase. In the major markets of the country, the average price of 3.0mm hot-rolled coils was 3841 yuan per ton, which rose by 121 yuan in one week; the average price of 4.75mm hot-rolled coils was 3,770 yuan per ton, a week. Rose 126 yuan. In the Shanghai market, it can be seen that the hot rolled coils have experienced a steady trend of high prices, and the market transactions are relatively average. In the Guangzhou market, at the beginning of the week, the market demand was weak, and the price was weak. After a week later, as the futures oscillated upwards, business confidence boosted and hot coil prices rose positively. Market turnover improved from the previous period. Plate prices also rose sharply, and traders’ mentality continued to be optimistic.
The iron ore market is also upside. According to the latest report of the “Nishijin Shinkansen”, in the domestic ore market, the prices of iron concentrates in Hebei have increased slightly. The enthusiasm of the steel mills for purchasing domestic mines has been boosted, and individual mines are reluctant to sell. The price of imported ore fell first and then rose. In the middle of the week, it again surged above the level of 80 US dollars per ton. As of the 8th, Platts 62% grade iron ore index closed at 81.15 US dollars per ton, up 3.85 US dollars a week. Recently, shipments from overseas mining companies have increased, iron ore stocks at domestic ports have continued to rise, and iron ore stockpiles at steel mills have gradually reached high levels. The price of imported iron ore will be adjusted around the threshold of $80 per ton.
The analysis of relevant institutions believes that the recent steel market's expectation of contraction of the supply-side, affected by the rectification of intermediate frequency furnace production lines and the investigation of illegal steel production capacity, has contributed to the sustained and substantial rise in domestic steel prices. At the same time, the risk of market adjustment is gradually accumulating. On the one hand, current earnings of iron and steel enterprises have once again returned to a higher level, which may stimulate supply to increase again. On the other hand, merchants’ inventory resources are profitable at current prices, taking into account the risk-to-benefit ratio, before the end of the "Libraries" will be mainstream ideas.