Many places with heavy rainfall, steel prices where to go?

Date:2021-07-24Source:ManagerFollow:

On July 22, parts of southwest Hebei, northwest Henan, south Guangxi, Leizhou Peninsula of Guangdong, northwest Hainan Island, south Yunnan, north-central zhejiang coast, north-central Taiwan island and other places have large to heavy rain, among which,Heavy rain (100-160 mm) will hit parts of southern Hebei, western and northern Henan, Leizhou Peninsula, northwest hainan Island and northern Taiwan Island.Some of these areas are accompanied by short-term heavy precipitation (the maximum hourly rainfall is 20 ~ 50 mm, local can exceed 70 mm), local strong convective weather such as thunderstorms.Heavy rain is expected to weaken in Henan and Hebei provinces this evening.

Raw materials

The iron ore market weakened after rising this week.The broad Index is in a volatile run, with 62% of the Platts at $213.6.As the iron ore supply continues to improve and production restrictions continue to ferment, traders are in a weak state of mind, and the price will not be strong. After the temporary replenagement of the steel mills, the port spot has fallen into a downturn, and the wait-and-see mood is heavy, and the market activity is low.Domestic mining market is expected to be stable in the short - term, a few about 5-10 yuan adjustment range.

[coke] domestic coke market stability in the weak operation.Due to the heavy rainfall in Henan, the arrival of coking coal is not good, pingdingshan coke enterprises were forced to limit production of 20%-30%, coke supply in the short term regional tension.In addition, some coke enterprises in northwest China have reduced coke quality and converted to produce high-sulfur coke because of the difficulty of replenishing low-sulfur coal, and the supply of low-sulfur coke is tight.In other areas, coke enterprises maintain normal production levels, inventory pressure is small, coke supply and demand have declined in the short term, coke market is expected to be stable in the weak operation.

costs

On July 22, Tianjin And Hebei steel enterprises immediately non-tax cost of molten iron 3573, converted billet tax cost of about 4602, Tangshan billet exw price of 5180, profit of about 578 yuan/ton.The cost of hot metal inventory is estimated to be about 3717 (excluding tax), equivalent to the cost of billet including tax is about 4765, and the profit is about 415 yuan/ton.

The total inventory of Tangshan on July 22 was 415,000 tons, which increased by 6,600 tons compared with that of yesterday. Among them, Haiyi Hongren entered the warehouse yesterday 0.57 and left the warehouse 0.49, and the current inventory was 208,900 tons;Xiangyu Zhengfeng yesterday warehouse 0.52 warehouse out 0.11, the current inventory 159,300 tons;Products zhenxiang yesterday warehouse 0.26 out 0.09, inventory 468 thousand tons.Recently, some foreign billets flow into tangshan, market circulation resources increase, billet inventory rise.This morning, Tangshan billet straight transaction is weak, warehousing spot part of the 5230 yuan including tax, traders mentality is cautious, market trading shows wait and see.

market

[building materials] this week across the country building materials prices up and down range is limited, the overall range of narrow shock running.The overall transaction situation of the market is general, more is the internal market drum pass style turnover, the terminal is affected by the heavy rain in North China and the high temperature in south China, the demand is still relatively weak, the desire to purchase is not high, more on demand to take goods, the steel production limit policy is increasingly strict, the market is expected to add the shock is strong next week, the range is temporarily 50-100.

[profile] Domestic mainstream cut 10-60 this week.This week temporarily stable operation, concussion rhythm continues to slow down.Recently affected by policies such as environmental protection and production reduction, the price of some raw materials resources is high, steel enterprises mainly purchase raw materials on demand, and some varieties of resources are in tight supply, so the market price is strong.But tangshan area limited production control to make part of the shortage of resource specifications, market supply pressure is not big, stimulate middlemen to take goods into the market.To sum up, the price fell more or less, the overall shock is weak.

[hot roll] This week the national hot roll market fluctuation dilemma, the range in 0-130 yuan.This week, the high temperature and rainy weather swept across the country, downstream construction rhythm has been inhibited, resulting in the overall obstruction of transportation and loading, coupled with the completion of the second half of the crude steel production reduction task to achieve two carbon targets, the transaction performance is very few, the merchant accompanied by low shipments;This week, there was a lack of purchasing demand and a lack of acceptance of high prices, and there was not much improvement in real demand at downstream terminals.Therefore, it is expected that next week the national hot rolling market or in the weak shock adjustment.

Comprehensive consideration: due to the much reduced crude steel output message to continue fermentation, plus the mainstream steel prices, the market's price will remain strong, but considering the off-season end demand downstream performance, also wary of speculative demand, steel mill volume or fell this week, and parts of henan, shandong province, central China had a greater influence on the rainfall on the market clinch a deal, is expected to mainstream price stabilization operation tomorrow.