The hottest construction steel price rebounded in

2022-07-26
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Construction steel price rebound is short-lived and unable to get rid of the downward channel

construction steel price rebound is short-lived and unable to get rid of the downward channel

1373 China Construction Machinery Information

Guide: as long as the fundamentals remain unchanged, any tentative rebound in quotation and tentative bottom reading of large orders in the construction steel market are destined to be a short-lived strategic flower proposed by Tan made in China 2025 to realize China's manufacturing power. According to the latest market report provided by Xiben Shinkansen, a well-known domestic steel spot trading platform, the reluctantly rising in the weak market has been proved to be wishful thinking. With

as long as the fundamentals remain unchanged, any tentative rebound of quotation in the construction steel market and tentative bottom reading of large orders are doomed to be a "flash in the pan". According to the latest market report provided by the well-known domestic steel spot trading platform "Xiben Shinkansen", the reluctantly rising in the weak market has been proved to be wishful thinking. As the steel price rises and falls back, the steel market may enter a new round of decline channel

according to monitoring, the construction steel price in Shanghai rose and fell. As of the 3rd, the Xiben index was at 3700 yuan per ton, unchanged from the previous week. At present, the ton price of representative specifications of high-quality grade II deformed steel bars in Shanghai is about 3630 yuan, up 20 yuan a week; The quotation of high-quality grade III deformed steel bar in Shanghai is about 3730 yuan per ton, up 10 yuan a week. Market participants described the process of "flash up and flash down" of steel prices: in July, steel prices continued to plummet. Recently, steel mills' plans to reduce production and overhaul have increased, and the market panic has eased slightly. In addition, the main contract of steel futures has received some support at the price of 3700 yuan per ton. Some "bottom reading" needs to start trying to enter the market with "big orders". At one time, the price of steel per ton in Hangzhou rebounded by 150 yuan. However, in just a few days, the transaction turned from strong to weak, and the mentality of the merchants turned weak again, and the steel price also "rose and fell"

at present, steel mills are under great pressure, pricing is difficult, the loss area is expanding, and the output is difficult to be significantly reduced. According to the relevant summary information, the domestic construction steel manufacturers are facing "difficult choices" in the latest pricing. The prices of some steel mills that were originally priced higher fell sharply; Some steel mills that closely follow the market pricing will take advantage of the "flash rise" of the market price to transfer out the factory price slightly. According to the statistics of CISA, the profits of large and medium-sized iron and steel enterprises in the first half of the year decreased by 96% year-on-year, and the sales profit margin was only 0.13%. If the investment income is deducted, the actual loss of the main iron and steel industry in the first half of the year will reach 1.3 billion yuan. It is expected that the losses of iron and steel enterprises may further expand in July. However, in mid July, the estimated daily average output of crude steel in China increased by 1.8% month on month, reflecting that the substantial production reduction of the iron and steel industry has not yet been fully started

after the decline, the price of iron ore has "stabilized". If the price of raw materials such as ore, which is originally unreasonable in price comparison, is not adjusted in place, the plight of the iron and steel industry will only "worsen". In the inner ore market, the price of iron concentrate in Hebei is weak and stable. Although the raw material inventory of steel mills is generally at a low level, they are not in a hurry to purchase. They still focus on consumption inventory. The procedure can be preset, so the transaction in the mining market is relatively light. The price of foreign ore rebounded slightly, and the quotation of 63.5% Indian fine ore was about US $124 per ton, a slight increase of US $1 over the previous week. In the middle and late July, the price of imported ore continued to fall sharply, and began to show a price advantage over domestic ore. Recently, some steel mills have made up a small amount of stock, so prices have rebounded slightly. However, with the expansion of the scope of maintenance and production reduction of domestic steel mills, the demand for iron ore in the later stage will be reduced, and the rebound of imported ore prices will be difficult to continue

analysts from relevant institutions believe that the steel price rebound in just twoorthree days is too short to be regarded as a price rebound. "The demand of future generations for renewable energy is obviously insufficient" and can only be regarded as "a small wave" in a weak market. In the later stage, there is still room for steel mills to further reduce prices and make up the difference. The steel market will again face the pressure of "weaker demand and lower cost", and the steel price may enter a new round of decline channel

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