The weak demand still dominates the trend of the domestic steel market, and the decline in spot steel prices is expanding. The fall in steel prices will inevitably inhibit the release of steel production, and the demand for iron ore will shrink simultaneously, and global iron ore prices will continue to be low.
According to the latest market report provided by the well-known steel information agency “My Steel”, the domestic spot steel price index closed at 73.86 points in the past week, down 1.57% in the week, and the decline has expanded. Business confidence is biased towards pessimism, generally bearish on the late market, and the operation is mainly based on active shipments.
According to analysis, in the construction steel market, prices have gone from rising to falling. The price of tons in Shanghai, Hangzhou and Jinan fell by 20 yuan to 100 yuan a week. The market price in the Beijing-Tianjin-Hebei region fell sharply. Due to the coming of the off-season, the market transactions were even lighter. The merchants mainly focused on accelerating shipments. It is estimated that the price will continue to decline in the next step.
In the board market, prices are also falling across the board. The price of hot-rolled coils is weak, and the price of tons in Shanghai, Fuzhou and Guangzhou has dropped by 20 yuan to 100 yuan a week. In some areas, although market resources are gradually digested, merchants' willingness to ship is still strong, and market confidence is very weak. The price of plate has continued to weaken and fall. The price of tons in Shanghai, Fuzhou and Wuhan has dropped by 10 yuan to 50 yuan per week. With the arrival of the off-season, terminal demand is even more sluggish, and merchant shipments are getting worse. In the absence of favorable factors, the market can only operate in a stable and weak state. The global iron ore market continues to operate at a low level. According to the latest report of the “Xiben Shinkansen”, in the domestic mining market, the price of fine iron powder in Hebei region fell slightly. The operating rate of domestic mines continues to decline and sales are difficult. Imported ore prices fluctuated slightly. As of the 12th, the Platts 62% grade iron ore index closed at $48.1 per tonne, up slightly by $0.3 a week. At present, domestic steel enterprises are seriously losing money, and the scope of production reduction is expanding. The overall supply of iron ore market is in a situation of oversupply, and the price of minerals will fall slightly.
Relevant agencies believe that despite the recent increase in the number of steel mills to reduce production, the sharp decline in steel exports has made domestic supply pressures still difficult to reduce, coupled with tight funding and pessimistic attitudes, the domestic steel market is still shrouded in a bearish In the atmosphere. Short-term domestic steel prices will continue to decline.