Since entering January, China's cold rolled steel coil, hot rolled steel in coils market overall trading flat, steel traders generally cautious about the market. It is expected that in the short term, the cold and hot rolled coil market will be weak consolidation operation. At the same time, steel traders should beware of the risks associated with the pullback of steel prices.
In the first half of January, the steel cold rolled coil and hot rolled coiled steel market in Shanghai was not prosperous, in which the price of hot rolled coil steel fell by RMB 90/tonne and the price of cold rolled coil fell by RMB 50/tonne, and the overall demand was general. From the market trading conditions, this time, the user procurement demand is not much, the willingness to take goods is not strong, the wait-and-see atmosphere is relatively thick, steel traders sales are not too smooth. Some merchants in order to shipments, in the steel transaction price to give concessions, but the actual transaction volume is not much.
For the aftermath of the market, in the short term, the cold rolled steel sheet in coil and hot rolled steel sheet in coil market or difficult to see an upturn, the main reasons are as follows:
First, the end demand situation is generally general.
From the cold rolled steel sheet, hot rolled steel plate market demand, the current demand is generally general, and later to see the automobile, home appliance manufacturing operation.
According to industry institutions, in early January, China's passenger car market retail sales of more than 380,000 units, an increase of more than 20% year-on-year; China's passenger car manufacturers wholesale volume of more than 330,000 units, an increase of more than 14% year-on-year.
Second, the recent market supply has increased.
From the cold rolled sheet and hot rolled steel sheet market supply situation, recently, many steel enterprises are still mainly overhaul. However, a few days ago, China Baowu, Hegang, Shougang, CITIC Taifu Special Steel Group and several other mega steel enterprises in the early stages of a number of shutdowns and maintenance of the production line resumed production, the recent increase in steel production.
China Iron and Steel Industry Association statistics show that in the first half of January, the key statistical steel enterprises cumulative production of 2019.21 million tonnes of crude steel, 18.0415 million tonnes of pig iron, 19.0196 million tonnes of steel. According to estimates, in the first half of January, the country's daily production of crude steel 2.6591 million tonnes, an increase of 19.31%; daily production of 2.11995 million tonnes of pig iron, an increase of 12.22%; daily production of 3.6712 million tonnes of steel, an increase of 6.97%.
Thirdly, the market's willingness to suppress raw materials has increased.Recently, with the further expansion of the loss of steel enterprises, the market on the raw material side of the willingness to strengthen the suppression. 10 January, Hebei, Shandong mainstream steel enterprises again reduced coke purchase price, to promote the coke price of the second round of downward adjustments to the full landing, coke enterprise profit contraction again. At the same time, iron ore prices also appeared high fall. Steel raw fuel prices shocked back down, resulting in rigid cost support weakened power. This largely determines the short-term cold and hot rolled coil market prices are difficult to rise sharply, will be mainly weak consolidation.
Post time: Jan-24-2024