Daily Comment: Steel prices continue to fluctuate under demand

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Today's hot spot

Today, the prices of major steel products in the domestic steel market continue to decline. Due to the recent bad news, the operation of the merchants is still relatively conservative. Fortunately, the trend of the futures market has improved slightly, and the mentality has recovered. Of course, today's spot is difficult to form an immediate effect. Fundamentally, the current production of pig iron and crude steel is still at a high level. With the advent of the hot and rainy season, the contradiction between supply and demand in the market still exists. Under the weak demand pattern, steel prices may continue to fluctuate, and it is still recommended to operate cautiously.

Macro hotspot

1. [Agricultural products futures closed higher, coal futures rebounded slightly] Vegetable and soybean meal closed up more than 2%, hot coil, Shanghai lead, Zhengyou, Huxi, thread, iron ore, corn, etc. rose more than 1%, Zheng cotton Shanghai aluminum, glass, Shanghai gold, sugar, coke, eggs, etc. closed up. Ferrosilicon led the decline, closing down 4.3%; manganese silicon fell 2.4%, rubber, plastics, apples fell more than 1%, asphalt, Shanghai copper, Shanghai zinc, crude oil, Shanghai nickel, Zheng coal, Zheng alcohol, Shanghai silver, coking coal, etc. Closed.

2, [the rebound on the market is weak, the weak shocks fall]

The Shanghai Composite Index closed at 3154.65 points, down 0.45%, with a turnover of 160.7 billion.

The Shenzhen Component Index closed at 10,564.13 points, down 0.63%, with a turnover of 221.6 billion.

The GEM closed at 1838.40 points, down 0.41%, with a turnover of 78.9 billion.

3. [Three ministries: strictly guarding the bottom line of prevention and control of agricultural credit guarantee risks] The Ministry of Finance, the Ministry of Agriculture and Rural Affairs, and the Banking Regulatory Commission held a video conference to promote the national agricultural credit guarantee work. The meeting stressed that speeding up the work and boosting the rural revitalization strategy. In view of some of the problems and tendencies of the current agricultural work, relevant departments at all levels and agricultural companies should fully understand the important role of the national agricultural work in the financial and financial cooperation to support the rural revitalization strategy, and firmly grasp the moderate scale of agriculture. The policy orientation of the operation strictly adheres to the bottom line of the risk of prevention and control guarantees, ensuring the healthy and orderly development of the national agricultural credit guarantee work.

4. [The National Energy Administration issued the "Notice on the Relevant Requirements for Wind Power Construction Management in 2018"] The notice pointed out that the implementation of competitive methods to deploy wind power projects. From the date of issuance of the notice, the newly-added centralized onshore wind power projects and the offshore wind power projects of the provinces (autonomous regions and municipalities directly under the central government) that have not yet issued the annual wind power construction plan for 2018 should all allocate and determine the on-grid tariffs through competition.

Market today

Raw material

[Steel billet] The national billet market prices have risen and fallen. Tangshan steel billet rose 10 yuan / ton, Shandong, Jiangsu fell 20 yuan / ton, Shanxi fell 30 yuan / ton. Today, the billet straight hair transaction is weak, the stock spot 3640-3650 yuan / ton tax-included out of the low price, there are individual transactions, the merchants hold a wait-and-see attitude; the period screw low shock, the finished products of some varieties of low-cost turnover. Today, Shandong steel billet dropped 20 yuan / ton, Q235 billet factory 3670-3680 yuan / ton, billet resources supply is in short supply, individual steel mills do not quote not to order, multi-row pre-order orders, less spot resources.

[Domestic mine] The market of major domestic production areas declined slightly. The price of Licheng in North China fell by RMB 10/ton; the price of Fanchang and Tongling in East China fell by RMB 10/ton, and the price in Minjiang fell by RMB 20/ton; prices in Northeast China and South China were temporarily stable. Specifically, the North China-Tangshan 66% dry-based tax-included cash factory is 635-645 yuan / ton, the west of the 66% dry-based tax-included cash out of 620-630 yuan / ton, Qian'an 66% dry basis tax-included cash factory 640-650 yuan / ton; Zunhua 66% dry basis tax-included cash factory 625-635 yuan / ton.

[Imported mine] The price of imported mineral traders is basically stable. The mainstream price of PB powder in Tangshan Port is 460 yuan/ton, and the mainstream price of PB powder in Shandong Port is 455 yuan/ton. Steel mills still mainly purchase on demand, but with the afternoon The trend of the disk has become stronger, the mentality of the spot market has been boosted, and the overall performance of the market throughout the day has been generally good, and the price has stabilized slightly.

Steel spot

Construction steel: Today's domestic construction steel prices fell slightly. In terms of specific prices, the average price of 25 major cities nationwide was 4,049 yuan/ton, which was 21 yuan/ton lower than that of the previous trading day. Among them, Taiyuan and Hefei fell significantly, with a drop of more than 50 yuan/ton, and the rest of the region fell by 10- 40 yuan / ton. Specifically, the early market continued to be weak, the price continued to fall, and the low turnover rebounded slightly. In the afternoon, as the snails became red, the spot market transactions rebounded, and some regions offered small gains. From the inventory data, on the 24th, the 35-city social inventory thread of the city was reduced by 41.31, the wire 172.82 was reduced by 20.30, and the steel thread inventory of 214.01 was increased by 4.74. From the data point of view, although the de-library speed has slowed down, the overall situation remains stable. There is still strong support for building materials prices before the supply has not recovered significantly and the inventory has increased. On the whole, it is expected that domestic building materials prices will remain strong and volatile tomorrow.

Hot-rolled coil: Today, the hot rolling prices of 24 major cities in the country fell slightly. The average price of 3.0 hot-rolled coils was 4,274 yuan/ton, down 2 yuan/ton from the previous trading day, and the national average price of 4.75 hot-rolled coils was 4216. Yuan/ton, down 2 yuan/ton from the previous trading day. In the morning of this morning, the quotation of the business remained stable. In the early morning, the market wait-and-see mood was strong, and the quotations of the merchants remained stable, with individual markets falling slightly. However, with the rise of the futures market, the market mentality has improved, and the market price rebounded slightly in the afternoon. At present, the market inventory resources are relatively small, plus the cost remains high, the space for price decline is not large, if the later transactions can be released, it is not excluded that the price may still rise. In addition, the billet market price rose by RMB 10/ton, and the current billet price was RMB 3,600/ton. On the whole, it is expected that the price of the hot-rolled market will fluctuate tomorrow.

Plate: Today's domestic plate market price consolidation, the average price of 20mm medium and heavy plate in 23 major cities nationwide was 4,399 yuan / ton, down 5 yuan / ton from the previous trading day. Today's futures market rose slightly, market confidence recovered, business quotations remained stable, and individual cities fell slightly. At present, the market inventory resources are relatively small, the pressure on merchants is not large, and the order price of steel mills remains high, and the cost support is strong. However, the current market demand is relatively general, and the transaction has not been released significantly, so the price space is not large in the short term. In addition, the billet market price rose by RMB 10/ton, and the current billet price was RMB 3,600/ton. On the whole, it is expected that the price of the plate market will fluctuate tomorrow.

Cold rolling: Today's national cold rolling prices fell slightly. Price: 1.0 national cold rolling average price of 4645 yuan / ton, compared with the previous working day price fell 3 yuan / ton. The main market price: Shanghai market 1.0mm WISCO coil plate offer 4540 yuan / ton, Guangzhou market 1.0mm Angang coil offer 4610 yuan / ton, Tianjin market 1.0mm anang steel coil offer 4480 yuan / ton. Market: Nanchang area has a strong willingness to price, and the price has risen slightly by RMB 10/ton. The prices of Hefei, Fuzhou, Changsha and Chengdu have dropped slightly by RMB 10-40/ton. Early morning trading performance was not good, the market wait-and-see mood was strong, and the futures price rose in the afternoon, and the transaction volume was heavy. Inventory: This week, the national cold-rolled inventory was 1,109,200 tons, a decrease of 0.66 million tons from last week. It has been declining for five consecutive weeks. The merchants have a strong willingness to ship, and the confidence in the current market is obviously insufficient. It is expected that the short-term cold-rolled prices will still be dominated by shocks.

Profile: Today's domestic steel market prices fell slightly. Tangshan steel fell 10-20 yuan / ton in early trading, the transaction was concentrated in low-cost resources, high-priced transactions were difficult. After the futures opened lower and higher, the manufacturers' mentality recovered and the trading activity was active. Some of the low-priced capital of the manufacturers rebounded by 10-20 yuan/ton. In addition, Tangshan Pufang billet rose 10 yuan / ton in the afternoon, and the steel mills have a strong willingness to price. The price of East China profile fell slightly by 10-20 yuan / ton, the spot market high pressure on the transaction increased, coupled with the bearish sentiment of the market for the market, so the quotation is high. The price of South China's profile is weak and stable. After the price has been lowered slightly, the transaction is still weak. However, considering the difference between the current market price and the ex-factory price of the steel mill, the merchants will continue to lower the price. On the whole, in the short term, the high spot transaction will become more and more blocked, and the resource price will gradually adjust downwards. However, there is cost support, so it may maintain a weakening operation.

Steel pipes: Today's domestic steel pipe prices are rising and falling. In terms of varieties, the average price of welded pipe 4 inch 3.75mm is 4396 yuan / ton, down 9 yuan / ton from the previous trading day; galvanized pipe 4 inch 3.75mm national average price 5240 yuan / ton, down from the previous trading day 11 yuan / ton; seamless pipe 108 * 405mm national average price of 5,239 yuan / ton, up 1 yuan / ton from the previous trading day. Regarding the pipe factory, the prices of Tianjin Youfa, Lida and Juncheng have not been adjusted yet. The hot rolling price of Linyi mainstream seamless pipe factory is 4750-4850 yuan/ton. In terms of welded pipes and galvanized pipes, market transactions have improved, midday futures have risen, market sentiment has been boosted, traders are still mainly shipping, and inventories are generally low. In terms of seamless pipes, market transactions were generally poor, prices continued to be sluggish, traders had fewer orders and meager profits. It is expected that the market price of steel pipes will continue to operate in a narrow range tomorrow.

Futures: Today, domestic black commodity futures closed up, the transaction volume was small, and the funds flowed out sharply. Among them, the finished products showed strong performance today and led the gains; the double focus followed, the iron ore performance was weak, and the increase was less. Specifically: In the morning, the market still maintains a weak shock pattern. The overall market resources of the local market fell by RMB 30/ton, and the transaction was not smooth. The net inventory data of this week, which was released by my steel network in the afternoon, decreased further than last week. There is a certain positive sentiment on the disk surface. The entry of the capital to make more funds will lead to a large number of short positions, and the short-term decline will be for a while. Waiting for the market to stabilize and run today, the thread will close the small Yang line, the entity Yang line will over the top yesterday, the bullish performance today. Strong, the night plate is expected to have inertial upside, 3500 with limited support, operating the above recommendations, bargain-based.


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