In the past November, China's cold rolled steel coil and hot rolled steel coil market continued to fluctuate,prices rose and fell, the market trading overall cold,steel traders on the aftermath of most of the cautious mindset.It is expected that in the short term,the cold rolled steel coil and hot rolled steel coil market will run slightly shaken.
In November, cold rolled steel sheet in coil and hot rolled steel in coils prices in the Shanghai market generally oscillated and recovered. For example, the price of 1.0 mm cold plate made by Anshan Iron & Steel rose from RMB 4,830/tonne on 1 November to RMB 4,860/tonne on 30 November, up RMB 30/tonne; the price of 5.5 mm hot rolled coil made by Anshan Iron & Steel rose from RMB 3,840/tonne on 1 November to RMB 3,970/tonne on 30 November, up RMB 130/tonne.
During this period of time, the downstream end-users into the market procurement is more cautious, basically just need-based, traders have sales but not big. Some merchants in order to ease the financial pressure, choose to reduce the price of shipments, resulting in steel prices appeared "open + dark drop" phenomenon.
Around the late cold rolled steel coil and hot rolled steel coil market trend, the short term will not have much colour, but the probability of a big rise and fall is also relatively small, the reasons are mainly the following aspects:
First, the overall demand is weak, promotional policies to be landed. At present, the cold, hot rolled coil consumption of automobile manufacturing industry sales pressure still exists. Passenger car market information association data show that in November, China's passenger car manufacturers wholesale volume reached 1.596 million units, down 9% from a year earlier. 30 November, China Automobile Dealers Association released the latest issue of "China's auto dealers inventory warning index survey" shows that in November, China's auto dealers inventory warning index was 60.4%, down 4.9 percentage points year-on-year, down 4.9 percentage points year-on-year, compared with the same period last year. November, China's auto dealers inventory warning index was 60.4%, down 4.9 percentage points year-on-year, up 1.8 percentage points year-on-year, inventory warning index is located above the Rongquan line, indicating that the automotive distribution industry is in the non-boom zone.
Secondly, it is difficult to significantly increase the market supply in the late stage. At present, the northern region has entered the heating season, coupled with the tightening of environmental protection requirements, steel enterprises to stop production restrictions and year-end maintenance increased. According to incomplete statistics, as of 1 December, nearly 30 steel enterprises in China have released information on overhaul. Steel production is unlikely to rise sharply in December. It is difficult for the resources put on the market to grow significantly in the later stage, which is conducive to easing the contradiction between supply and demand, thus curbing the price decline in the cold rolled steel coil and hot rolled coil market.
Third, the cost of steel production is still high, rigid cost support is still strong. Recently, iron ore, coke, scrap and other raw steel fuel prices continue to be high. As of November 30, Hebei Tangshan region of plain carbon billet factory price of 3630 rmb/ ton, up 130 rmb/ ton; Jiangsu region of scrap steel price of 2740 rmb/ ton, up 10 rmb/ ton; Shanxi region of the first coke price of 2200 rmb/ ton, up 200 rmb/ ton; Australia's 61.5% fines (Qingdao Port, Shandong) price of 980 rmb/ ton, up 30 rmb/ ton.
Rising prices of raw steel fuels, resulting in a sharp rise in production costs of steel enterprises, in determining the ex-factory price of steel is basically to support the price. In the rigid cost support, it is expected that the late cold rolled steel coil, hot rolled steel coil market prices fell limited space.
From Metallurgical News China
Post time: Dec-12-2023