Steel market trends
Cold rolled:
The cold-rolled market was operating within a narrow range this month. The average daily price of cold-rolled sheets in key domestic cities was 6,627 yuan/ton, up 125 yuan/ton month-on-month and 2050 yuan/ton year-on-year. Among them, the market price in Shanghai area of Angang's 1.0 cold coil is 6,440 yuan/ton, a monthly decrease of 40 yuan/ton; Tianjin Tiantie’s 1.0 cold coil is 6,350 yuan/ton, a monthly decline of 110 yuan/ton; Lecong Liugang 1.0 cold coil is 6,330 yuan/ton , The monthly decline is 200 yuan/ton. The mainstream of 5.5 general hot coils remained at 5620 yuan/ton, down 380 yuan/ton month-on-month, and the current price difference is around 820 yuan/ton, which is an increase of 330 yuan/ton from the previous month. Cold rolling is stronger than hot rolling. The settlement price of C material for some steel mills was 5820 yuan/ton in August, up 120 yuan/ton from the previous month.
Demand side: According to historical data, September is the lowest point of hot-rolling downstream demand of the year. However, due to the impact of high temperature, epidemics, power curtailment and floods in August this year, the demand dropped too much, and the above-mentioned environment improved in September. , Driven by the effect of post-disaster reconstruction and performance impact, the overall demand is expected to be flat in September.
Summarize:
The fundamentals of hot rolling in September will remain weak in both supply and demand. The output on the supply side continues to decrease, the proportion of steel or thin products has increased, the weather on the demand side has turned cooler and the precipitation has decreased, the cases have been dynamically cleared again, and the production restriction measures have decreased. On the whole, supply reduction and weak demand go hand in hand, and prices may fluctuate.
