China Printing Ink Resin manufacturer

Anhui Herrman Impex Co., Ltd


September 28, 2022

The steel price continues to rise as the price of Shigang rises sharply and 9 steel mills rise

1、 Current market price of steel
On September 27, the price of domestic steel market turned to rise, and the factory price of Tangshan Pufang billet rose 30 yuan to 3680 yuan/ton. Black futures rose strongly, spot prices rose one after another, and the trading atmosphere of the market warmed up.
On the 27th, black futures rebounded sharply. The closing price of the main futures contract 3837 rose 2.29%, DIF and DEA spread upward, and the RSI third tier index was at 57-71.
On the 27th, 9 steel mills raised the factory price of construction steel by 10-120 yuan/ton.


2、 Market price of four kinds of steel
Construction steel: On September 27, the average price of 20mm Grade III anti-seismic deformed steel bars in 31 major cities nationwide was 4148 yuan/ton, up 26 yuan/ton from the previous trading day. To be specific, the price of domestic construction steel rose steadily in the morning after the high level of the snail fluctuated in the early trading period. From the perspective of transaction, the afternoon snails remained high, spot prices in some cities rose significantly, speculative demand rebounded, downstream procurement enthusiasm was high, and the transaction was significantly better than the previous trading day. In the short term, as the National Day approaches, the demand for replenishment before the festival is still there. Although the current output is at a relatively high point, the market still has expectations for the release of demand in the peak season as the spot transactions improve. Therefore, driven by the sentiment in the short term, it is expected that the domestic construction steel price will continue to run strongly on the 28th.
Hot rolled coils: On September 27, the average price of 4.75mm hot rolled coils in 24 major cities nationwide was 4048 yuan/ton, up 16 yuan/ton from the previous trading day. Today, the black commodity futures market operated with strong shocks. As the market continued to rise in the afternoon, the confidence of the spot market was boosted, and the transaction was warmer. On the whole, the contradiction between supply and demand in the market has slowed down in the near future. As the National Day holiday approaches, the demand for terminal replenishment begins to release. With the expectation of supply reduction, the pressure on price rise in the near future decreases. It is expected that in the short term, the price of hot rolled coils in China will be dominated by narrow amplitude strong shocks
Cold rolled coil: On September 27, the average price of 1.0mm cold coil in 24 major cities nationwide was 4503 yuan/ton, up 17 yuan/ton from the previous trading day. As the black futures market turned strong at night yesterday, the quotations of merchants rose slightly this morning. Some merchants said that although there was a demand for goods in the spot market before the festival, the trading sentiment was still restrained. The spot transaction performance was average. Compared with the previous year, the market was obviously weak a week before the National Day holiday, and the merchants were still mainly relying on the funds returned from shipment. Although the futures market is on the rise, the momentum of the spot market is insufficient, so most merchants are firm before the festival and confused after the festival. Near the settlement cycle of the steel plant, the merchants did not have too much hope for the settlement price, and it is expected that losses will continue to dominate. To sum up, it is expected that the price of domestic cold rolled coils will fluctuate in a narrow range on the 28th.
Medium and heavy plate: On September 27, the average price of 20mm plain plate in 24 major cities across the country was 4206 yuan/ton, unchanged from the previous trading day. Today, the volume of hot volume futures fluctuated strongly, the spot market was cautious and optimistic, and the merchants' quotations were mainly consolidated. From the supply side, as the profits of the steel plant are squeezed and the order receiving level is poor, the production enthusiasm of the steel plant is poor, and the output keeps a narrow fluctuation. In terms of demand, due to the impact of interest rate increase, the market mentality has slightly improved. In addition to the stock up surge before the National Day holiday, the terminal stock up atmosphere is relatively positive, and the deal is fair. Short term demand is expected to continue to increase, which has a certain boost to the market. To sum up, it is expected that the price of national medium and heavy plate will be stable and strong on the 28th.


3、 Market price of raw materials and fuels

Coke: On September 27, the coke market was temporarily stable. For the first round of adjustment of coke price, wet quenching and dry quenching will be increased by 100 yuan/ton and 110 yuan/ton respectively, and mainstream steel mills have no response. The production of coke enterprises started normally with high stability, coke enterprises actively shipped, and the inventory in the factory continued to fall. The coal price still rebounded strongly, the coke cost support was strong, the profitability of the coking plant fell back, some coke enterprises fell into losses again, and the coke enterprises' rising mentality was strengthened. In terms of steel plants, the coke stock of steel plants has been continuously replenished in the early stage. At present, the stock performance is still good. The steel plants have started at a high level. The market is still in a game mood, and the coke market is temporarily stable in the short term.

Scrap steel: On September 27, the scrap steel market price was stable on the whole, and the scrap steel price of mainstream steel plants increased steadily. Today, the falling price sentiment stopped obviously. Driven by the rebound of the stock market, the holiday atmosphere became more intense. Many steel mills continued to increase prices slightly, and the base wharf also increased prices slightly. Of course, the sentiment was still relatively conservative, and the market turnover was average. In general, the short-term scrap market may rise slightly.


4、 Steel market price forecast

Near the National Day holiday, the steel spot market had a good trading performance, the enthusiasm of downstream goods preparation was high, the market confidence was boosted, and the steel price rose with the black futures. At the same time, due to the recent rise in coking coal prices, the coke cost is strongly supported, and some coke enterprises are reluctant to sell to wait for an increase, but the steel plant benefits are low, and the coke steel game continues. In the short term, supported by better demand, the steel price is more volatile.

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