From the market performance before the approaching festival, spot price of structural steel pipe continued to rise on the transaction caused by the resistance,which will be more obvious, but in view of the current majority of varieties of the overall social database resources, it is still in a state of decline, so the price still has some inventory support. On the other hand, as the market has performed relatively well in the past two weeks, steel enterprises have maintained a strong attitude towards spot goods. However, after several waves of concentrated volume expansion, the terminal demand has obviously started to show wait-and-see sentiment, and the actual transaction process of market quotation has also enlarged certain bargaining space.
Last week the domestic steel market price rose slightly, the main reason is the tax cut policy officially implemented, the market impact weakened;Second, the current downstream in the consumption season, the overall upward trend of hot dipped galvanized steel pipe price did not change. Recent positive factors mainly include: China’s manufacturing PMI will rise above 50 for the first time after contracting for three consecutive months. The official manufacturing PMI rose 1.3 percentage points to 50.5, and caixin PMI rose 0.9 percentage points to 50.8. According to statistics, local government bonds were issued at a total of 624.5 billion yuan in March, up from 418 billion yuan in January and 364.2 billion yuan in February. From the recent market, the market inventory continued to decline,faster than before, among which rebar and wire decline more than 5%, reflecting the current market demand is relatively good.
Market focus: raw materials: foreign accident continuous fermentation, drive the main iron ore contracts traded harden, Tangshan spot also rise of 20 yuan/ton, but with the strength of the ore market outside pull up, steel pipe suppliers also sync with higher cost, so the steel mills will have to adjust its proportioning plan, ore in the usage will be increased, the late further attention ore market price change. Starting aspect: with the end of the peak production limit in autumn and winter, the steel enterprises have resumed production one after another. According to the new statistics of this website , the blast furnace utilization rate in hebei area was 84.69% according to the volume, with a weekly increase of 8.42%. Overall, the current market in the cost, demand support, steel prices are expected to continue to operate at a high level, but this month steel enterprises concentrated production release of galvanized steel pipe obvious, so operation still need to operate carefully, short-term price shock adjustment.
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Post time: Aug-10-2020