Warmly celebrate the 72nd anniversary of the founding of the People’s Republic of China.
Source: My steel Sep30, 2021
China National Day Holiday: OCT 1TH TO OCT 8TH, our company continues to provide online services to our respected customers, welcome everyone to send inquiries and inquire about product prices and details.
ABSTRACT: On September 29, the domestic steel market mainly rose, and the ex-factory price of Tangshan billet rose by 20 to RMB 5,210/ton. In terms of transaction volume, the pre-holiday stocking demand decreased slightly compared with the previous two days. The downstream purchases were mostly based on the distribution of bulk orders, and there was not much speculative demand. The overall transaction volume decreased slightly.
- The scope of power rationing is expanded! Raw material prices are skyrocketing! What is the situation of steel companies and coke companies? Will steel prices continue to rise?
Raw material spot market:
- Coke: On September 29, the coke market was temporarily operating steadily. On the supply side, the limited production of coking in Shandong, Shanxi and other places continued this week. The 4.3-meter coke oven in Xiaoyi, Luliang, Shanxi was required to be shut down at the end of this month, involving a total production capacity of 1.45 million tons. On the demand side, due to the dual control of energy consumption, downstream steel mills have increased their production restrictions, and the demand for coke is declining. Continuous attention should be paid to the suspension of production restrictions in steel mills in various provinces and cities. As the National Day holiday is approaching, the overall purchase intention of the company is acceptable.
- Scrap steel: On September 29, the price of scrap steel was stabilized. The average price of scrap steel in 45 major markets across the country was 3334 yuan/ton, which was 1 yuan/ton lower than the price of the previous trading day. Although the limited production of steel mills has affected the decline in scrap demand, due to the low social inventory of scrap steel, scrap resources are still in short supply. Most steel mills choose to increase prices and absorb goods to prepare for the National Day holiday, so there is still room for scrap steel to operate.
Supply and demand of steel market:
- Latest news: Jiugang Yuzhong Iron & Steel plans to suspend production of blast furnaces and rolling lines from October 10 to December, which is expected to affect the output of building materials about 700,000 tons; Jiayuguan headquarters plans to suspend production of 4 blast furnaces, the specific time to be determined, November The No. 1 building materials rolling line is completely shut down, which is expected to affect the output of 350,000 tons of building materials; a small amount of production of other varieties will be reduced, and stainless steel is normal; the total output of building materials is estimated to be reduced by about 1.05 million tons in the fourth quarter.
- The impact of short-term production curtailment continues to increase, and the market’s sentiment is still strong. Most leading steel mills have raised the ex-factory prices of building materials. Today, the prices of merchants have increased significantly. As the National Day holiday approaches, the downstream replenishment momentum has gradually weakened. Considering that some resources in the market are still in short supply, merchants are also reluctant to sell, and steel prices continue to run at a high level.
Steel market forecast of October:
In October 2021, the steel industry’s prosperity returned to the high level of the year, and continued to rebound within the expansion range, indicating that the domestic steel market is still in the traditional peak demand season. From the current situation, the domestic steel market has relatively strong demand for stocking, but the actual downstream The procurement demand of the industry is not as expected, but the traditional infrastructure industry is speeding up planning and approval, stepping up fund raising and promoting project start, while the demand performance of the manufacturing industry may be weakened. The expectation of actual decline in steel production is accelerating its transformation into reality. The domestic steel market will move towards a new balance of supply and demand under the game of gradual recovery in downstream demand and actual decline in steel output. Therefore, the study predicts that the domestic steel market in October 2021 will show a trend of high volatility.
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Post time: Sep-30-2021