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Steel mills cut prices, and steel prices are running weakly

On October 9, the domestic steel market price fell slightly, and the ex-factory price of Qian’an Pu billet in Tangshan was stable at 3,710 yuan/ton. On the 9th, the transaction performance of the steel market was weak, the high-level resources were loosened, and the market rally was weak, and traders mainly focused on shipments.

Demand: According to a survey of 237 traders, the average daily trading volume of building materials in the week before the festival was as high as 207,000 tons. On the first day after the holiday (October 8), the trading volume of building materials was 188,000 tons. On the 9th, the trading volume continued to decline, failing to continue the hot trend before the holiday.
Supply: This week, the blast furnace ironmaking capacity utilization rate of 247 steel mills surveyed was 88.98%, a month-on-month decrease of 0.17%; the average capacity utilization rate of 85 independent electric arc furnace steel mills was 48.23%, a month-on-month decrease of 4.87%. According to the survey, Tangshan will start the sintering production limit again from October 14 to 22, while the logistics of Shanxi steel plants will be gradually hindered and tightened due to the impact of the epidemic, and the inventory will accumulate to varying degrees.
Steel production has not changed much this week, and attention will be paid to the late autumn and winter production restriction policy in the north, which may restrain the supply side. After the National Day, the demand performance was lower than expected, and the epidemic situation in some areas was severe, which had a certain impact on demand. Market sentiment tends to be cautious, and short-term steel prices may fluctuate weakly.

Post time: Oct-10-2022