Chinese steel mills have intensively raised prices, raising billets by ￥40 per ton – Steel prices continued their upward trend.

Your Steel News:

• On 26^St July, the domestic steel market prices generally rose, and Tangshan steel billet ex-works raised 40 cny to 5240 cny/ton.
• Affected by the strengthening of the futures and billet markets, the steel spot market is actively rising today.

• On the 26th, most of the black futures varieties rose, and coke rose more than 3%.
• The main force of the snails closed at 5687, up 0.44% from the previous trading day, DIF and DEA crossed upwards, the RSI three-line indicator was located at 69-79, and the Yanblin belt was running on track.

• On the 26th, 16 steel mills across the country adjusted the ex-factory price of construction steel by 20-110 cny/ton.

Raw material spot market:

Coke:

• On July 26, the coke market was operating steadily, and news of Shanxi Coking’s production restriction was reported, which significantly boosted the market mentality.
• In terms of supply, Shandong coke companies basically maintained their previous production ratios, while coke companies in Jining, Heze and other places faced more inspections, production was unstable, and production restrictions were also relatively large, ranging from 10% to 40%;
• The national environmental protection inspection team is stationed in Shanxi, and some coke companies in Luliang, Shanxi have reduced production by 20%-50% due to environmental inspections.
• On the demand side, affected by the policy of reducing crude steel production, the number of blast furnaces in Shandong that have been shut down for maintenance has increased, and demand has shrunk significantly.
• The coke ovens of individual steel plants in Jiangsu have been shut down for maintenance, and most of them are still in normal production, but this policy will most likely be implemented in place in the future.
• Crude steel is expected to be reduced across the country.
• As soon as the news of Shanxi’s production restriction came out, the demand for coke changed from a decline in supply and demand. The coke market was temporarily stabilized because of the reduction of crude steel or steel mills that were expected to prepare for a decline in coke.

Scrap steel:

• On July 26, the scrap market price weakened, the mainstream steel mill scrap price remained stable, and the mainstream market scrap price weakened.
• With the strong rise in the price of finished steel billets, the market mentality has been boosted, and the shipment speed of traders has slowed down.
• Affected by the typhoon weather in East China, resource circulation is weak, some terminals have stopped collecting, and scrap steel has shown a downward trend. Driven by high profits, steel mills are still highly motivated to use waste.
• Scrap steel prices are expected to stop falling and stabilize on the 27th.

China’s steel market forecast:

• At present, the market sentiment is generally optimistic due to the impact of the restricted production policy. Although the rigid demand has not seen a significant increase in volume, the mentality is better, the pattern of weak reality and strong expectations will still exist, and there is still room for upside in the short term, but the continuous rise is also It is necessary to guard against policy suppression caused by emotional overheating. It is expected that domestic steel prices may continue to rise on the 27th.