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. Different from the sharp rise and fall in the prices of steel raw materials, the futures prices of rebar and hot coil have been consolidating in a narrow range this week, with little price fluctuation. As of Friday's close, they were quoted respectively. Received 4265 yuan and 4311 yuan. At the same time, the spot price of steel also rose for two days and fell for two days, with little change compared to last week.
On July 1, Shagang issued a steel ex-factory price policy for early July. Among them, the prices of rebar, hot coil, coil screw and high-speed wire were reduced by 250 yuan/ton, 600 yuan/ton, 300 yuan/ton and 300 yuan/ton respectively, and the quoted prices were 4800 yuan/ton, 5010 yuan/ton and 4900 yuan respectively. / ton, 4810 yuan / ton. Although some subsidies are given to agents, according to market feedback, the quotations for Shagang's steel products are extremely high. In order to save costs, many construction sites are preparing to use all steel from steel mills such as Zhongtian and Yonggang . The consequences of high quotations are still gradually appeared in the market.
Yesterday, a friend left a message for one of our analysis articles: The steel market has a confusing future, why do you still want to leave? I was filled with emotions after reading it. read a report on the steel market from the Financial Associated Press in the afternoon. This article touches on the steel market, steel traders, steel mills and design institutes, and truly reflects the current status of the domestic steel market.
Steel market: Contrary to the expected busy scene, only one or two gantry cranes could be seen sporadically working on site, and the trading atmosphere in the steel market was light.
Steel traders: Most companies have low inventory in their yards, and some traders have almost zero inventory. Everyone's sales are not very good, and they don't dare to reduce inventory.
Architectural Design Institute: Compared with previous years, the number of real estate design projects this year has dropped significantly, with more urban renovation and infrastructure design projects . However, in general, such projects mostly use cement, stone and decorative materials, and steel is There is less demand.
steel mill: has fallen into losses since the middle of the month, and the industry's losses have intensified again recently. The factory is full of steel, and there is really no place to put it. The factory production line has never had two weekends off, but now it actually has two weekends off.
The ideal is full, but the reality is cruel. This is the true portrayal of the steel market in the first half of the year. In response to the current dilemma in the steel market, a senior executive of the China Iron and Steel Industry Association said: The main problem in the current steel market lies on the steel demand side, but the realistic solution lies on the steel supply side.
explains in one sentence the dilemma of the steel market and also provides a solution. Demand-side problems must be solved by higher levels. The sharp decline in steel demand caused by the downturn in the real estate industry cannot be solved by one department.
Judging from the above-mentioned statements by the leaders of the China Steel Association, the issue of supply-side should have been put on the agenda. The work of reducing steel production capacity may be accelerated in the second half of the year. The sharp decline in iron ore, coke, and coking coal in the past two days is partly estimated to be related to the reduction of steel production capacity.
Some time ago, a futures company analyzed that there are two plans to reduce domestic steel production capacity in 2022: one is to reduce it by 30 million tons; the other is to reduce it by 50 million tons. According to the current supply and demand situation in the domestic steel industry and steel demand in the international market, it is more likely to reduce steel production capacity by 50 million tons.
Since the beginning of this year, steel mills have not taken the initiative to reduce production significantly in the face of sluggish demand, resulting in a serious inventory backlog since June. After a large amount of funds were occupied, they had to sell at low prices, and steel prices also plummeted. If the government takes the lead in reducing steel production capacity, it will have a great impact on suppressing excessive steel raw material prices and steel finished product prices.
