Steel price is stable and weak, adjusting long and short factors

Release time：Mar 29, 2019 From： anonymous

Today's news

　　Today's steel prices are stable and weak. The data shows that the prices of building materials in 24 major cities in the country fell, 15 of which fell by RMB 10-60/ton, and nine cities maintained stability. The hot coil price was stable, with two cities falling by RMB 10/ton, two cities rising by RMB 10-20/ton, and 20 cities maintaining stability. The price of medium and heavy plates was stable and weak, with 6 cities falling by RMB 10-70/ton, three cities rising by RMB 10-20/ton, and 14 cities maintaining stability. Want to know what tomorrow, the details of the analysis look down...

　　Steel spot market

　　Construction steel: falling

　　The average price of rebar 20mmHRB400E in 24 major markets nationwide was 4008 yuan/ton, down 15 yuan/ton from the previous trading day, of which 15 cities fell 10-60 yuan/ton, and 9 cities maintained stability. At the end of the month, merchants waited for shipments. As the snails climbed sharply, the spot atmosphere eased, the billet rose by 10, and the business mentality was positive. Most of the steel mills have not resumed production, and the merchants are willing to pay a good price. It is expected that the building materials prices will be firm tomorrow.

　　Hot rolled coil: the main stable tone

　　The average price of 4.75 hot-rolled coils in 24 major markets nationwide was 3,926 yuan/ton, which was the same as the price of the previous trading day, of which 2 cities fell 10 yuan/ton, 2 cities rose 10-20 yuan/ton, and 20 cities stabilized. . The volume opened higher and higher, boosting market confidence. The market is basically low-cost resources. The goods are invoiced at the 13% tax rate next month. On the last day of the month, the market trading atmosphere is active and the performance is acceptable. Tomorrow's hot coil prices may be dominated by consolidation.

　　Plate: the main stability is weak

　　The average price of 14-20mm Puzhong board in 23 major markets nationwide was 4,027 yuan/ton, down 4 yuan/ton from the previous trading day, of which 6 cities fell by 10-70 yuan/ton, and 3 cities rose by 10-20 yuan/ Tons, 14 cities are stable. It is understood that today's merchants have more stable prices, some high-end low, but in the afternoon driven by the strong futures, the afternoon transactions have improved, the low resources have decreased, considering the supply and demand have not improved significantly, the market sentiment is still cautious with the behavior, It is expected that the price of the Mingzhong board will be consolidating at a high level.

　　Strip: steady adjustment

　　The average price of 2.5mm*232 strip steel in 11 major markets nationwide was 3,864 yuan/ton, down 1 yuan/ton from the previous trading day. The average price of 3.5mm*685 strip steel in 12 major markets nationwide was 3,869 yuan/ton, which was the same as the price on the previous trading day.

　　Profile: stable and weak

　　The average price of 50*5 angle steel in 23 major markets nationwide was 4,246 yuan/ton, up by 1 yuan/ton from the previous trading day. The average price of 16# channel steel in 22 major markets nationwide was 4167 yuan/ton, down 1 yuan/ton from the previous trading day. The average price of 25# I-beams in 23 major markets nationwide was 4,180 yuan/ton, which was the same as the price on the previous trading day.

　　Pipe: main stability

　　The average price of 108*4.5 seamless pipes in 21 major markets nationwide was 4,918 yuan/ton, which was the same as the price of the previous trading day. The average price of 219*6 seamless pipes in 21 major markets nationwide was 4,970 yuan/ton, down from the previous trading day. yuan / tonne.

　　Raw material spot market

　　Iron ore: a small drop

　　The general index has slightly declined, the domestic powder merchants are still firm, and Tangshan’s local resources are hard to ease. Coupled with the meager profits of traders, they are not willing to make profits. Individual steel companies can only raise their purchases, and the tax increase is just around the corner. Both are stable and wait and see. It is expected that the iron ore will be stable in the next day.

　　Coke: stable and weak

　　After two rounds of price hikes, the profit of the coke enterprise has been at a low level, and the price of the upstream raw material is pushed to seek profits. As the steel mills resume production, the demand for coke will increase, and the price of the coke will increase. The market is still pessimistic, and coke is expected to remain weak and wait-and-see tomorrow.

　　Scrap: the main stability is weak

　　The snail continues to fluctuate, the spot transaction is not good, the weak influence, coupled with the new tax rate is about to be implemented, the business mentality is expected to fall, the business mentality panic is actively shipping, and the scrap price is expected to continue to weaken tomorrow.

　　Pig iron: continue to fall

　　At present, the raw material trend is weak, the demand is not changed, the market price is chaotic, more than one single discussion, and the bargaining space is large, the wait-and-see atmosphere is strong, the iron factory is not shipping fast, and the tax point is lowered, the business mentality is pessimistic, and the pig iron market is expected to be weak tomorrow. Hard to change.

　　There are several factors influencing factors

　　1. Development and Reform Commission: According to the VAT rate adjustment, the general industrial and commercial electricity price will be reduced accordingly. The National Development and Reform Commission issued a notice recently, indicating that it will reduce the general industrial and commercial electricity prices according to the adjustment of the VAT rate of the grid enterprises.

　　According to the notice, after the grid enterprise VAT rate is adjusted from 16% to 13%, the space for the reduction of the tax-included transmission and distribution price of the provincial grid enterprises is used to reduce the general industrial and commercial electricity prices. In principle, it will be implemented from April 1, 2019.

　　2. Survey and statistics of blast furnace overhaul in steel mills (March 29, 2019). The blast furnace operating rate of 247 steel mills was 75.73%, up 0.7% from the previous month and down 2.21% year-on-year; the utilization rate of blast furnace ironmaking capacity was 78.31%, up 0.81% from the previous month and up 2.56% from the same period of last year. The profit rate of steel mills was 86.64%, up 1.21% from the previous month. %, the daily average iron ore output was 2.19 million tons, an increase of 22,600 tons, an increase of 71,700 tons.

　　3. The infrastructure construction ushered in a “blowout period” with more than 7,500 projects started in March. With the arrival of “Golden Three”, the infrastructure projects across the country have exerted their strength and the investment rate has increased. As of March 29, the major projects in March started to exceed 7,500, with a total investment of more than 3.5 trillion.

　　Comprehensive view

　　Today's steel prices are stable and weak. According to market statistics, this week's spot market volatility is weak, but the transaction has always remained tepid, the downstream demand has not improved significantly, the terminal is mainly on-demand purchase, the market is very cautious, on the other hand, the market is limited in production. The lack of good news on the news side, the performance of long and short factors, and the lack of confidence in the business, it is recommended that the operation be accompanied by shipments.