Steel mills have raised steel prices sharply. Would steel prices

March 4, 2020
Latest company news about Steel mills have raised steel prices sharply. Would steel prices

As a result of the "Spend Spring Festival locally" policy generally advocated this year.


Continuous construction during the Spring Festival in many places, and the demand for steel is better than in previous years due to the increase in operating rate.


Earlier and stronger peak season factors also further support price increases such as steel.


With clear constraints on the carbon peaking target, it is expected that the stability of the steel industry's performance in 2021 will steadily improve.

In the early trading, the price of steel products in most areas in China has risen significantly. In terms of transactions, some markets indicated that prices have risen too fast.


Downstream wait-and-see sentiment increased, the overall transaction situation throughout the day was average, and prices in some cities were slightly loosened in the afternoon.

In the short term, with the black futures rising, coupled with the high ex-factory price of steel mills, market demand is gradually recovering.

It is expected that domestic steel prices will fluctuate and run strongly tomorrow




The spot price of steel material rose sharply following the futures, and the billet rose by 140 yuan to 4410 yuan.


The price of various steel products has risen by more than 100 yuan. The sales atmosphere of the steel market in some regions is booming. The number of steel traders who are waiting to be closed is increasing. The downstream steel users have limited acceptance of high-priced steel. Most of them wait and see and purchase on demand.




Domestic commodity futures closed, black led the gains, coking coal rose more than 6%, Shanghai aluminum rose more than 4%, thread, hot coil, etc. rose more than 3%


Rebar 2105 closed 4732, up 1.83%, Masukura 69404 hands. Under the influence of various news, the snails continued to fluctuate, and a large amount of funds poured in in the late trading to continuously push up the price of snails. Hot-rolled coil 2105 closed 4907, up 1.13%, Masukura 6,370 lots.


Foreign futures


The most active April gold futures price on the New York Mercantile Exchange gold futures market fell 17.8 US dollars from the previous trading day on the 3rd to close at 1715.8 US dollars per ounce, a decrease of 1.03%.


raw material


The sudden surge in domestic steel futures and spot prices stems from the "March Air Pollution Comprehensive Control Month Plan" issued by Tangshan City last night, which triggered strong expectations of the steel market for the recent decline in supply. The "Plan" requires that Tangshan Xinbaotai Iron and Steel be shut down before March 10, and seven 450m blast furnaces of Yanshan Iron and Steel, Tangshan Iron and Steel, Rongxin Iron and Steel, and Huaxi Iron and Steel will be shut down.


Steel spot market


Construction steel: The price of domestic construction steel fell first and then rose, some of which went up and down. The average price of 20mm grade 3 rebar in 25 major cities across the country was 4676 yuan/ton, down 2 yuan/ton from the previous trading day. The rebar price index was 4700, down 7 from the previous trading day. Specifically, black futures first fell and then rose. In the morning, the price of construction steel in most areas of the country was stable and loose. In the afternoon, as the snails rose sharply, low-level resources rebounded. The market reported that transactions were significantly improved and speculative demand increased.


Hot-rolled coils: The average price of 4.75mm hot-rolled coils in 24 major cities across the country was 4,856 yuan/ton, down 3 yuan/ton from the previous trading day. The futures market in early trading today oscillated, and the spot market had a strong wait-and-see sentiment. The market prices fluctuated alternately, and the overall transaction was average. However, the current market mentality is still optimistic, coupled with the support of costs, there is little room for short-term price drops, but we need to be wary of the risk of price adjustment in the later period.


Cold rolled coil: The average price of 1.0mm cold coil in 24 major cities across the country is 5647 yuan/ton, up 2 yuan/ton from the previous trading day. It is understood that the early trading was affected by the weak and fluctuating electronic disk futures, and traders' quotations were basically priceless. Some markets darkly reduced the deviation of preferential shipments. In the afternoon, as the electronic disk futures strengthened, market transactions improved, and some market transaction price discounts were cancelled. The market is bullish.


Plate: The average price of 20mm general plate in 24 major cities across the country is 4860 yuan/ton, which is 5 yuan/ton lower than the price of the previous trading day. Today, some merchants secretly lowered their sales, but then the billet rose by 10 yuan/ton, which boosted market sentiment and shipments improved. As the country advocates the New Year in situ this year, the resumption of work and production after the holiday is earlier than in previous years, the recovery of demand has also advanced, and the balance of supply and demand is gradually restored.


Raw material spot market


Imported ore: Tianjin iron ore market prices fluctuated after the opening of the market. Traders' quotations were basically stable compared to yesterday. Tianjin Port PB powder price was 1185 yuan/ton, card powder price was 1370 yuan/ton, and ore prices rose in the afternoon, partly Traders raised their quotations by 5-10 yuan/ton, and steel mills mostly wait and see, with fewer firm offers, and the market is relatively deserted. As of press time, Tianjin Port Newman sieve block is 1508 yuan/ton.


Coke: The domestic coke market is operating weakly, and the second round of coke reduction has basically landed. On the supply side, coking companies started operations at a high level. On the demand side, coke companies and traders were more enthusiastic about shipping. Most coke resources flowed to steel mills, which made the increase in coke inventory of steel mills more obvious, and their purchasing enthusiasm was weaker than in the previous period. The factory has control of the arrival situation.


Scrap steel: The scrap market is consolidating and moving upwards, with price adjustment steel mills mainly raising scrap prices, and mainstream steel mills mainly raising scrap prices. Specific to the market, on the 2nd, the average price of scrap steel in 45 major markets across the country was 2938 yuan/ton, an increase of 25 yuan/ton from the previous trading day. In terms of finished products, the market turnover is picking up, and the finished products market is stable and strong, which is good for scrap.