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Steel futures turn red, inventory drops, steel prices are expected to stop falling

Sep 26,2020  Steel Knowledge.

Steel spot market 

Cold rolled coil: On September 26, the average price of 1.0mm cold coil in 24 major cities across the country was 4,653 yuan/ton, down 2 yuan/ton from the previous trading day. Today's hot-rolled electronic disk futures fluctuated strongly, and some markets' hot-rolled spot rebounded slightly in the afternoon. From a fundamental point of view, the downstream demand for cold rolling is general, and the northern market continues to show a downward trend. From the perspective of supply and demand data, cold-rolling factory warehouses and social warehouses have begun to increase, and table demand has declined, reflecting that the fundamentals of cold-rolling may gradually deteriorate and the contradiction between supply and demand is becoming prominent. On the whole, domestic cold-rolled prices will run weakly and steadily tomorrow. 

Plate: On September 26, the average price of 20mm general plate in 24 major cities across the country was 3978 yuan/ton, down 7 yuan/ton from the previous trading day. Due to the recent weak operation of Tangshan billet prices, the price trend of medium and heavy plates in the dominant market recently fell slightly due to this influence. Some markets remained stable but generally had a dark drop. Although the trend of futures is strong today, spot transactions are still weak. In terms of transactions, most merchants reported that the current demand is poor, coupled with the approaching National Day and Mid-Autumn Festival, downstream purchasing enthusiasm has weakened, and overall transactions are light. On the whole, the current demand for the plate market is weakening, and the spot price is likely to fall but difficult to rise. It is expected that the plate price may run weakly tomorrow. 

Raw material spot market 

Imported ore: The imported iron ore market continued to weaken on the 26th. Today morning, Tianjin Port PB powder price is 900-910 yuan/ton, PB block price is 940 yuan/ton, Jinbu Ba offers 870 yuan/ton, and the bargaining space is 5-10 yuan/ton. There is no transaction in the morning. In the afternoon, the price of ore was the same as that in the morning. Some traders lowered their quotations by RMB 5/ton, and some traders followed the market. The steel mills have fewer offers, mostly wait-and-see. Before press time, the transaction in Tianjin was 840 yuan/ton for mixed powder and 958 yuan/ton for high-phosphorus powder. 

Coke: The coke market remained stable after rising on the 26th, and the third round of increase was basically implemented. As for coke companies, they are actively producing under high profits. Most of the orders are good and there is no inventory yet. The overall coke supply is still tight. As for steel mills, the blast furnace capacity utilization rate of downstream steel mills continues to be at a high level, and some steel mills still have replenishment demand. The profit compression is obvious. The Hebei part stated that there will be a blast furnace maintenance plan in the later period. The specific time is still under discussion, and the short-term coke replenishment demand is still; the port’s willingness to collect the port is low due to the price upside down, and the quotation has risen but the actual transaction is light; overall Look, the price of coke has stabilized in the near future.

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