The domestic steel market weakened in November

In October 2019, the domestic steel market experienced a slight downward shock. According to the monitoring data of Lange steel cloud business platform, the comprehensive price index of Lange steel nationwide was 144.5 as of October 31, down 1.9% from the end of last month and 14.8% year on year. The price index of building materials of cold rolled square steel tube was 156.7, down 1.9% from the end of last month and 18.5% year on year. The board price index was 131.7, down 1.8 percent from the end of last month and 11.9 percent year on year. The profile price index was 152.7, down 1.9% from the end of last month and down 12.6% year on year.The tube price index was 154.3, down 2.2% from the end of last month and down 11.8% year on year (see figure 1).

 

galvanized square tube

From the Lange steel regional price index, in October, steel prices in the six regions fell; Among them, the decline in southwest China was large, 3.1%; Northeast China saw a small drop of 0.6%; Other regions were in the middle of the pack, down 1.5% to 2.0%. In September, output of round steel pipe fell due to the impact of increased environmental production restrictions before National Day. China’s crude steel output reached 82.77 million tons in September 2019, up 2.2 percent year-on-year, according to the national bureau of statistics. Steel output was 104.37 million tons, up 6.9% year on year (see figure 2 for details). From January to September, China’s total crude steel output was 747.82 million tons, up 8.4% year on year. The cumulative steel output was 909.31 million tons, up 10.6 percent year on year. In terms of crude steel output, output of mild steel tube in September was 2.759 million tons, down 56,000 tons from August and down 2.0% month-on-month.

Steel social inventory continued to fall in October. As of October 31, the social stock of steel in 29 key cities was 8.276 million tons, down 15.2 percent month-on-month and up 2.2 percent year-on-year, according to monitoring data from Lange steel cloud business platform. Among them, the social stock of construction steel was 4.178 million tons, down 23.4% month-on-month and up 6.2% year-on-year. The inventory of the hot rolled rectangular steel tube was 4.098 million tons, down 4.7% month-on-month and up 1.6% year on year (see figure 3 for details). Although November entered the weak season of demand, from the calendar year in November, the probability of inventory decline is greater and the current traders are more pessimistic about the future market expectations.

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Post time: May-13-2020
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