Domestic steel prices are first suppressed and then raised

Domestic spot steel prices fell first and then rose, market demand was slowly recovering, and inventories continued to rise. The iron ore market was basically stable, and the high adjustment of imported ore prices was on the decline.

In the past week, domestic spot steel prices have been suppressed first. Specifically, at the beginning of the week, due to poor weather conditions in some areas, a considerable part of the downstream construction sites have not started normally, the demand recovery is relatively slow, and the inventory continues to rise, which has a restraining effect on steel prices. Near the weekend, the black futures market generally rebounded, and some mainstream steel mills also had a willingness to price, and market sentiment improved.
 

According to analysis, in the construction steel market, the average price of mainstream rebar varieties in major cities nationwide was 3,982 yuan per ton, down 27 yuan on a week-on-week basis. In the plate market, the average price of mainstream hot-rolled products in major cities across the country was 3,823 yuan per ton, up 12 yuan on a week-on-week basis. From the latest inventory situation, the steel market inventory continued to rise as a whole, but the peak inventory level is expected to be lower than in previous years. The overall market mentality is still relatively optimistic.
 

The iron ore market is in a stable and weak state. According to the latest report of “Xiben Shinkansen”, in the domestic mining market, the domestic iron fines market is mostly stable, and some regions have slightly increased. Some steel mills purchase on demand, and the wait-and-see mood of the mining market is relatively strong. The price of imported ore market was weak. As of the 22nd, the price of imported iron ore at 62% grade was 86.70 US dollars per ton, down by 1.1 US dollars on a week-on-week basis. At present, the import mines have not shown signs of replenishing the stocks after the holiday. Although the imported mineral prices rose to a stage high, the overall market confidence was insufficient, and the imported mineral prices continued to rise at a high level.
 

Relevant institutions believe that the recent steel price has approached the winter storage cost line, coupled with the slight increase in the latest ex-factory prices of some steel mills, the willingness of merchants to sell at low prices is not high, and the cost support is strong. The production enthusiasm of steel mills is general, and the space for production growth is limited. After the Lantern Festival, the downstream began to rework, and demand will continue to recover. In the short term, the steel market will be dominated by a slightly stronger operation.

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