August 28 Steel Price Index Falls Difficult

On August 28th, the Myspic Composite Index reported 129.5 points, down by 0.40% from the previous trading day. The accumulation of multiple negative positions made the national steel spot market pessimistic today, prices continued to drop slightly, and transactions failed to improve.

Although the forecast production of crude steel in the country fell slightly in mid-August, and supply pressure may have improved slightly, the sharp fundamentals of supply and demand contradictions have not yet been changed. Coupled with the situation in the futures market to recover across the board, today's Lo out of the unilateral market, suffered heavy losses and continue to hit a new low. In addition, the profits of industrial enterprises above designated size continued to decline in July, indicating that the actual downstream demand is still difficult to release. Not only that, the recent raw materials have continued to fall, the current low level of Tangshan billet has been close to 3,000 yuan mark yesterday, ore prices have fallen below one hundred yuan mark. Considering that in addition to the above factors, the market funds are also relatively tight at the end of the month. In a situation where many bad gains accumulate and there is no substantial favorable situation, market confidence is generally absent. The willingness of merchants to throw goods increases, and the short-term weakness of steel prices is difficult to stop.

On August 28th, the flat product index reported 113.7 points, down 0.56% from the previous day. Among them, the plate and hot rolled coil index fell by 0.34% and 0.57% respectively. Today, the domestic plate market has been in a downtrend, and prices in most parts of the country such as Shanghai, Beijing, and Guangzhou are still falling by RMB 10-30/t. The market in Kunming has seen a relatively large drop. As far as the Beijing area is concerned, since the prices of steel mills such as Wenfeng continued to be reduced to RMB 3,250/tonne, the ordering situation is still not good. In order to shorten the price difference with the surrounding areas, the Beijing market merchants have to lower their quotations, but the deal is still not improved. . Lecong's market price also continued to decline, but there was no sign of improvement in market transactions. Merchants shipped poorly, inventory was high, merchants received more pressure on payment, and price cuts increased. On the whole, although the demand is close to the peak season, the weak demand for downstream demand has not changed, raw material prices have continued to decline, and the market inventory has been high. In the short term, the price may continue to decline. On the 28th, the price of the 20mm general plate in Kunming market was lower than yesterday's RMB 40/ton.

Today, the market price of hot-rolled coils in the country generally fell. Except for parts of East China, such as Shanghai, which stabilized and stabilized, most of the rest of the market still experienced significant price declines. Affected by the credit crisis, the prices of individual merchants in the Shanghai market fell to 3,380-3,390 yuan/ton, but nobody cares. Due to the centralized repayment period for merchants in September, this week is again at the end of the month. The pressure on market funds is greater and the willingness to throw goods is higher. In addition, the billet price has dropped to around 3020 yuan, 61.5% of the price of Australian flour has fallen below one hundred US dollars per ton, making the bottom of the steel price support is getting weaker, the market is increasingly bearish on the outlook. Coupled with the economically weak operating environment, terminal demand is weak, and merchants generally adopt fast-forward and fast-out operation strategies, which have reduced losses. Therefore, in the short term, the domestic hot-rolled coil market will still be vulnerable. Compared with the previous trading day, the price of Q235B3.0mm HRC in Beijing and Kunming market dropped by RMB 40/t on the 28th.

On August 28, the long products index continued to decline at 147.7 points, a decrease of 0.25% from the previous day. The main screw 1301 contract suffered a sharp setback, closing at 3455, down 1.62%. As transactions continued to be light, prices of the national building materials market continued to decline weakly. In the dominant market, the mainstream prices of Shanghai and Tianjin remained weak, while Beijing’s prices rose slightly and Guangzhou declined slightly. The bad news in the market continued to accumulate. In addition to the continued weakness in the stock market and futures, and the tightness of market funds, billet and iron ore prices continued to fall, and 61.5% of Australian fines fell below 100 US dollars per ton, and market confidence was generally lower. Low, merchants have a strong sense of throwing goods. Hebei Iron and Steel settlement price has been introduced, the secondary thread prices in the Beijing market rose slightly today, the remaining varieties of the main weak stability. As a whole, the supply and demand side of the steel market still has no substantial improvement. With the continuous decline in steel prices, the steel industry's funding situation is still showing signs of deterioration. According to the data, as of the 27th of this month, among the 18 listed steel companies that issued the mid-year report, more than 80% of the steel companies should increase their prices. Not only that, in recent years, many provinces have intensively sent personnel to Beijing to prepare for the expansion of the property tax pilot, and there has been no sign of relaxation in the regulation of the property market. The demand for the building materials market is temporarily heavy. In the case of negative non-benefits, the domestic building materials market will continue to be dominated by weak consolidation in the short-term. On the 28th, the price of HRB33520mm rebar in the Shanghai market fell by RMB 20/t from the previous trading day.