• Categories:Industry Trends
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• Time of issue:2021-08-25 09:08
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(Summary description)At present, the domestic construction steel market is relatively weak. The continuous decline in the price of 304 stainless steel strip has made the profit margin of steel mills very small. Some qualified steel mills have gradually reduced the production of construction steel, increasing the production of plates with certain profit margins; secondly, since 2014, my country The volume of steel exports continued to rise. From January to August, my country exported 56.83 million tons of steel products, a year-on-year increase of 35.4%, setting a record high. In the case of continued weak domestic demand, a large number of exports eased domestic supply pressure. However, from the perspective of price, there is still no advantage. There is a phenomenon of "price-for-quantity"; thirdly, excess production in the north still exists in the fourth quarter of this year. The domestic steel market demand is weak, and the situation of North China goods going south is not optimistic; finally, the current operating rate of steel mills in North China is generally high, basically maintaining full capacity production, and the pressure on the supply side still exists. If the demand cannot be effectively recovered, the price of 304 stainless steel strip in the future Or will be further under pressure. To sum up, in October, domestic hot coil production was affected by the overhaul, and there was a substantial reduction in production. However, due to the reduction in orders from various steels, the resources flowing to the market did not decrease, and the market will still be under greater sales pressure in the later period. Although it alleviates the gap of insufficient internal ascending power, it accounts for a relatively small amount after all. Merchants and downstream companies have strong willingness to replenish warehouses, the billet market is fair, and the domestic market is operating smoothly as a whole. Recently, after the billet weather vane market in Tangshan fell sharply to 2350, downstream and merchants began to buy bottoms. The transaction was hot for a while, and the price rebounded to 2470. However, due to weak demand support, it fell back to 2400 and around 20 yuan in the last two weeks. The author predicts that the psychological bottom of the market will be at 2400, and the overly pessimistic outlook has been basically eliminated. However, as the leading market prices continue to consolidate at a low level, 304 stainless steel strip merchants have lowered their expectations for a price rebound, so they began to lower their quotations, and because the spread is still large, it is expected that there is still room for decline in the short term. In terms of inventory, the current inventory in the hands of merchants is low, and the large-scale inventory is only about 1,000 tons, and there is no plan to replenish in the short term.