Market confidence is insufficient short - term steel prices have fallen further empty

Analysts view: demand is not as expected, market confidence is insufficient, short-term steel prices have further space to fall, slightly bearish tomorrow.

The rate of operation of the blast furnace in the steel mill is not high

Last week, China's 247 steel mills operated 74.35 percent of their blast furnaces, down 1.30 percent from the previous week and 16.80 percent from a year earlier.The iron-making capacity utilization rate of blast furnace was 86.83%, down 1.21% from the previous month, down 7.67% from the same period;Steel profit rate of 86.15%, increased by 1.73%, year-on-year decline of 8.23%;The average daily output of molten iron was 2.311,300 tons, down 32,200 tons from the previous month and 204,200 tons from the previous year.The average operating rate of 71 eAF steel mills in China was 67.30%, up 0.33% from the previous month and down 5.36% from the previous year.The average profit of independent electric arc furnace steel plant is 437 yuan/ton, and the profit of Valley electricity is 535 yuan/ton, up 121 yuan/ton from the previous month.Independent electric arc furnace steel profits rose for four weeks in a row, and the rise is larger.The operating rate is not high, steel power limit production, lumber output decline, steel profits rise, short-term good steel prices.

Iron ore inventories have fallen in line with prices

The imported iron ore inventory of 45 ports in China was 128,134,200 tons, down 343,400 tons from the previous month.The average daily discharge volume was 2.4882 million tons, down 3542 million tons.Import 65% fine ore CIF 217.33 USD, down 10.98, down 4.81%;Import 65% fine ore spot trading price 1731.67 yuan, down 74.85 month on month, down 4.41%;Domestic 65% iron concentrate price 1495.0, down 3.22, 0.21%.Iron ore is bound by power plant power limit production, supply and demand continue to weaken is a major factor leading to price shocks and falls, and is expected to fall in the short term.

The high temperature in a large area of south China continues, and there are scattered rainstorms in south China

High temperatures continued in the Sichuan Basin, central and western Parts of jiangnan, and central and northern parts of South China.In terms of precipitation, the rainfall in northeast China is gradually weakening, and there is a dispersion to heavy rain in south China. In the short term, the supply and demand of the steel market remain weak.

Futures markets fell sharply

Today's thread main futures closing price of 5414, down 318 points, down 5.55%;Hot volume main futures close 5780, down 352 points, down 5.74%;Iron ore futures closed at 1054.0, down 9 points, or 0.85%.

The current price of steel has been greatly reduced

Rebar 24 markets,23 markets down 10-170, 1 market rose 20,20 mmHRB400E average price 5354 yuan/ton, down 82 yuan/ton from the last trading day;

Hot coil 24 markets in 22 markets down 20-200, 1 market rose 50,4.75 hot rolled coil average price 5811 yuan/ton, down 116 yuan/ton compared with the last trading day;

Medium plate 23 markets in 20 markets down 20-110, 14-20mm general medium plate average price 5737 yuan/ton, down 53 yuan/ton compared with the last trading day.

Iron and steel spot prices sharply reduced today, it is expected that the short - term steel market still has the power to fall, short - term bearish.

Steel price forecast for tomorrow:

Today market affected by meeting and then ask for the price stability, and high temperature parts in late July, typhoon, rainstorm, the outbreak, and many other factors, lead to market the progress slow, steel market demand less than expected, cause was scheduled for August shipment of steel at the end of July early release, therefore, the steel price on Friday after the fall, steel prices and large area cut today.It is expected that this situation in the short term and further down space, steel prices tomorrow still have a small shock down trend.