Steel prices fall more than the market wait-and-see mood is thick

In the end of May, the steel price decline did not show any signs of slowing down, the National Development and Reform Commission and other five departments of joint talks to remind key commodity enterprises caused by the further decline in the market, steel once fell more than 6%, the spot market overall decline, steel prices more than falling!

National Development and Reform Commission and other departments to jointly remind the bulk of key enterprises

Recent frequent high-level mention "commodity prices, May 23, the National Development and Reform Commission, ministry of industry and administration of state-owned assets supervision and administration and market supervision, the securities and futures commission, such as five departments held a meeting, a joint interview for iron ore, steel, copper, aluminum and other industries have stronger market influence of key enterprises, iron and steel industry association, the nonferrous metal association.The meeting once again stressed that key enterprises should take the lead in maintaining price order in the bulk commodity market, and should not collude with each other to manipulate market prices, fabricate and spread information about price increases, or hoard and drive up prices.From the statement of the meeting, reflecting the determination of policy control, also means that large, including steel prices still have room for further decline.

Affected by this, the period of steel plunged, spot down across the board

Steel futures fell sharply, with futures snails down 184 to 4974, futures coils down 216 to 5316, iron ore down 58.5 to 1064, coking coal down 4 to 1723 and coke down 40.5 to 2381.5.

Spot aspect, the market turnover is light, wait-and-see sentiment is stronger, affected by the period of steel slump, spot overall downward:

According to platform data, cumulative Saturday/day volatility:

The average price of 20mmHRB400E is 5171 yuan/ton, down 197 yuan/ton compared with the last trading day.

Hot coil 24 markets fell 100-300, the average price of 4.75 hot rolled coil 5513 yuan/ton, down 241 yuan/ton compared with the last trading day;

The 24 markets of the board fell 100-300, and the average price of the 14-20mm board was 5665 yuan/ton, down 219 yuan/ton compared with the last trading day.

There are steel mills also keep price reduction, most down 50-370

Incomplete statistics, today 30 steel mills in 25 steel mills down 50-370 yuan/ton, the policy control strength is greater, with the National Development and Reform Commission and other departments joint talks, the capital market fell sharply, steel prices continued to decline, further driving the market price decline.The bearish sentiment in the market has risen.

Scrap steel procurement prices continue to decline

Shagang since May 24, scrap steel prices down 70 yuan/ton.Under the impact of the continued sharp fall in the price of lumber, steel mill profit contraction, scrap prices have been squeezed, and this trend will continue.

Global crude steel production was up 23.3 per cent year on year

The latest data from the World Steel Association shows that in April 2021, the crude steel output of 64 countries included in the statistics of the World Iron and Steel Association was 169.5 million tons, an increase of 23.3% year on year.In April, crude steel output in Africa reached 1.3 million tons, up 93.9 percent year on year.Asia and Oceania produced 125 million tons of crude steel, up 19.2 percent year on year.Steel production continued to rise, the formation of a certain pressure on steel prices.

To sum up, affected by the policy bearish, steel prices more than falling trend, the market wait-and-see sentiment is strong, transaction continues to weaken, spot offer continues to decline, the price is further down the space, is expected to continue to fall steel prices tomorrow.