Domestic steel prices continue to oscillate: long products turn weaker plates become stronger

At present, the domestic steel market has a tendency of differentiation between different varieties in the context of general shocks. In the early period, the relatively strong long products varieties have been weakening. However, the relatively weak plate varieties have shown signs of strength.

According to monitoring, in the recent week, the domestic steel spot market fell first and stabilized, showing relative weakness. People in the market report that due to the “monthly borderline” period, the mentality of businesses has changed significantly. At the beginning of the week, due to poor market transactions, some merchants still faced greater financial pressure. Therefore, the market's mentality is generally weaker, and the price is also dominated by a weak callback. By the middle of the week and on the weekends, the traditional sales season of “Golden 9 Silver 10” has entered the peak season. Although the characteristics of the peak season have not yet been clearly reflected in the market, the merchants are expected to begin to turn better under the “traditional concept” and their willingness to fall will weaken.

According to analysis, the domestic construction steel market oscillated down. The decrease in market demand has a greater negative impact on the spot market. In addition, domestic construction steel mills have been cautious in pricing policies in early September, which has psychologically dampened market expectations. Based on the light status quo of recent transactions, steel prices will continue to maintain stability.

The market price of hot-rolled coils continued to show a slight downward trend. Market transactions continued to be sluggish, and the downstream procurement demand had not yet seen a significant improvement. The attitude of the enterprises remained strong and the intermediate demand in the market continued to be low. Steel mills have also shown considerable expense in introducing pricing policies. The latest hot-rolling price policy for steel mills such as Benxi, Rizhao, and Ningsteel is basically based on a flat and downward adjustment. However, there are other factors supporting the steel price, including: inventory is relatively low; raw material prices continue to be high; some hot-rolled mills in September may have affected the release of some of the production due to entering the maintenance period.

The market of cold-rolled coils began to turn strong, and local gains were more obvious. The overall turnover was still sluggish, and businesses were increasingly reluctant to sell. According to some analysts in the market, the reason why the prices of cold-rolled coils began to strengthen recently are generally as follows: First, the cold-rolling prices in the previous period remained low, the profit margins were greatly reduced, and the steel production enthusiasm was not high and they all decreased. Second, domestic cold-rolling demand has slowed down, and the spread of cold-rolled products at home and abroad has expanded. Some steel companies have turned to overseas markets. For example, in August, Hegang received an export contract for 14,000 tons of cold-rolled steel sheets, all of which were exported to India. At present, the domestic cold rolling market has a better match between supply and demand, and the tight rolling conditions may continue for some time. The demand for downstream industries such as automobiles and home appliances is also slowly picking up.

Analysts of relevant institutions believe that the market for differentiation between varieties will continue, the performance of long products will be weaker, and the performance of sheet steel, especially cold-rolled products, will be relatively strong. The overall mentality of businesses is still relatively stable. At present, the inventory level of domestic construction steel continues to rise, and the supply and demand of sheet metal products match relatively well. The market's expectation of “Golden September” still exists, so the steel market will continue to maintain its high consolidation position in the short term.