On February 24, the domestic steel market rose and fell, and the ex-factory price of Tangshan square billet fell by 20 to 3930 yuan/ton. The transaction performance of the spot market was low, and the market trading atmosphere was cold, and the transaction volume of the whole day was lower than that of the 23rd.
On February 24, the futures thread fell, the closing price of 4224 fell 0.87%, the DIF and DEA were both upward, and the RSI three-line index was at 61-69, running between the middle and upper tracks of the Bolin Belt.
Construction steel (seamless steel pipe): On February 24, the 20mm grade III seismic deformed steel and seamless steel pipe in 31 major cities across the country fell 17 yuan/ton compared with the previous trading day. The production of deformed steel and seamless steel pipes continued to rise this week, higher than that of the same period last year. Although the apparent consumption of deformed steel and alloy seamless steel pipes has also rebounded, the growth has slowed down. Fortunately, the inventory has peaked and dropped. Considering the insufficient follow-up of downstream demand, the spot price continues to rise with great resistance, but the current market inventory pressure is not large, which has some support for the price. Therefore, it is expected that the domestic construction steel price will maintain a narrow fluctuation operation at the beginning of next week.
Hot rolled steel plate: On February 24, the average price of 4.75mm hot rolled steel plate in 24 major cities nationwide was 4337 yuan/ton, down 3 yuan/ton from the previous trading day. The price of the spot market rose slightly in the morning, but the transaction was poor after the rise. In the afternoon, with the decline of the market, some markets retreated to the closing price on the 23rd, and the overall transaction was poor. At present, the market is still in the stage of stock reduction. This week’s data shows that both factory stock and social stock have declined. However, after the weak operation of futures and spot for many consecutive days, the market mentality began to weaken. In general, short-term hot-rolled steel plate prices may fluctuate in a narrow range.
Cold-rolled steel plate: On February 24, the average price of 1.0mm cold coil in 24 major cities nationwide was 4757 yuan/ton, up 3 yuan/ton from the previous trading day. The volatility of hot spot futures was weak, and the market sentiment weakened. Most of them were transacted with real orders. The terminal purchased on demand, and the transaction volume decreased compared with that of the 23rd. In terms of mentality, some businesses operate mainly by lowering the stock and withdrawing funds at low prices, while other businesses have low inventory and high settlement costs of steel mills. They have a strong willingness to stand up to the price, and generally take a cautious wait-and-see attitude towards the future market. Overall, it is expected that the domestic cold-rolled steel plate price will continue to fluctuate in a narrow range next week.
Medium and thick steel plate: On February 24, the average price of 20 mm ordinary plate in 24 major cities nationwide was 4443 yuan/ton, up 2 yuan/ton from the previous trading day. Traders’ quotations are weak and stable. This week, the steel plant operating rate was 75.38%, which was flat on a month-on-week basis; The actual weekly output of the steel plant was 1.3862 million tons, with a decrease of 26700 tons compared with the weekly output. The overall delivery rhythm of the market is fair. In addition to the reduction plan for the medium plate resources of the steel plant in the later stage, the overall quotation mentality of the traders is relatively firm. In general, the market demand performance is fair. With the weakening of the market, the upstream and downstream take a cautious wait-and-see attitude towards the current market price. It is expected that the national plate price will be adjusted in a narrow range next week.
Post time: Feb-28-2023