SunSirs: Off-season Demand is always Weak, and the Market for Mild Steel Plate is Sluggish

https://www.chemnet.com   Aug 13,2024

This week, most parts of the country were hot and there were local heavy rains. Off-season demand was always weak, and the futures of rebar fell to a new low in recent years. Construction steel companies generally suffered more losses, and the scale of production cuts and maintenance expanded. Steel companies' factory warehouses and social warehouses both fell, and steel prices in various places fluctuated and hovered at low levels.

According to the commodity market analysis system of SunSirs, the price of mild steel plates fell from August 5, 2024 to August 9, 2024. The price of ordinary medium plates (material: Q235B; specification: 20) was 3,332 RMB/ton on August 5, and 3,272 RMB/ton on August 9, down 1.8%.

Influencing factors

Bill market: This week, domestic billet prices fell weakly. As of August 9, the tax-inclusive price of Tangshan ordinary square billets was 3,070 RMB/ton, a weekly decline of 70 RMB/ton. In terms of inventory, Tangshan's main warehouse inventory was 946,100 tons, an increase of 8,000 tons from last week. At present, steel enterprises are facing increasing losses, more production lines are shut down for maintenance, billet trading is weak, major warehouses continue to accumulate inventory, inventory pressure is increasing, and manufacturers have lowered their quotations one after another. Considering that billet inventory is high, raw material costs are falling, but the decline of downstream finished products is slowing down, it is expected that the domestic billet market will fluctuate in a narrow range next week.

Supply and demand

The cumulative inventory of rebar in major sample cities across the country is 5.3786 million tons, a decrease of 161,700 tons from the previous week; the cumulative inventory of wire rod is 765,400 tons, a decrease of 9,700 tons from the previous week; the cumulative inventory of the five major steel varieties is 12.5931 million tons, a decrease of 117,300 tons from the previous week.

Analysis and forecast

Overall, the business environment of the steel market has deteriorated, and the market operation is cautious; steel enterprises have increased their efforts to reduce production, which has impacted the rigid demand for raw materials, but has increased the expectations of merchants for production cuts and price increases, and at the same time, they are anxious about the progress of digestion of old standard inventory. In the short term. The domestic Mild steel plate market is still mainly weak.

If you have any questions, please feel free to contact SunSirs with?support@sunsirs.com.

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