Domestic steel prices fell slightly, iron ore market fluctuated

After the May Day holiday, the domestic spot steel prices generally showed a slight downward trend, and the market mentality was weak. The iron ore market fluctuated and the port iron ore inventory level declined.

Domestic steel prices fell slightly

In the first trading week after the May Day holiday ended, the domestic spot steel price composite index closed at 149.77 points, down 0.41% in the week. Among them, the price of construction steel fell slightly. The average price of mainstream rebar varieties in the main markets of the country was 4227 RMB per ton, down 20 RMB before the May Day holiday; the price of hot rolled coils fell, and the mainstream hot rolled products in the main markets of the country. The average market price was 4058 RMB per ton, down 16 RMB before the May Day holiday; the price of plate was down, the average price of the mainstream specifications of the main market in the country was 4130 RMB per ton, which was lower 11 RMB than the May Day holiday.

In general, the operation of the spot steel market is dominated by weak shocks, and the quotation is relatively weak. Although there was a phenomenon of short-term upswings in the latter part of the week, market transactions increased slightly, but most of the downstream companies still focused on on-demand purchases. At present, steel mills are shrinking profits, but production remains high, which somewhat inhibits the momentum of the steel market.

The iron ore market is oscillating. According to the latest report of the “Xiben Shinkansen”, in the domestic mining market, the price rose slightly, and the demand for replenishment of some steel mills increased after the holiday. The price of imported ore market fluctuated. As of the 9th, the price of imported iron ore at 62% grade was US$95.15 per ton, up by US$0.55 on a week-on-week basis. After the holiday, the average available days of steel mill inventory decreased, and some steel mills increased the procurement required for the stock preparation, and the overall inventory level of the port fell again.

According to the analysis of relevant institutions, the supply pressure of the steel market is still relatively large, while the demand side is gradually weakening. The steel stocks and steel social stocks are facing a downward trend, and steel prices are still facing the pressure of callback. However, considering the support of high raw material prices, downstream demand will maintain a certain intensity, and the possibility of a sharp decline in steel prices is unlikely. (Source: Xinhua News Agency)

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