INDUSTRY NEWS
June 11th News
National construction steel volume monitoring data shows that the transaction increased. Specific to the market, the market atmosphere during the holidays was not strong. After the opening of the market, the prices generally fell. The intraday trading was once weak, and the low-cost resources transactions improved slightly, but there was still no stop-loss situation. From the current situation, demand performance is weak.
A few days ago, the United States announced that it would increase the tariff on China’s US$200 billion to US exports from 10% to 25%. More than 70% of the products are intermediates and investment products, and steel products are included.
And steel is also a threshold that the United States has long placed on the world market. In March last year, US President Trump once claimed that because imported steel and aluminum products endangered US national security, the United States would impose tariffs of 25% and 10% on imported steel and aluminum products, respectively.
This week, the price of the galvanized market is weak, and the merchants' confidence in the market outlook continues to be insufficient. Overall, the recent market demand continues to be weak, business transactions are still not good, the average daily shipments of large households is only about 300-500 tons, 2-3 levels lower than normal. Indeed, the South China region has entered a hot and rainy season, the construction industry demand is facing a greater test, terminal procurement is relatively cautious, at the same time, the financial pressure is also highlighted, but also the corresponding suppression of demand. In terms of inventory, spot stocks are at a normal low level.
The decline in domestic spot steel prices has become more pronounced, and steel mill profits have shrunk compared to previous ones, but downstream demand is still within normal limits. The iron ore market has generally risen, but at a certain high level, there are also signs of shocks.
In the past week, the domestic spot steel price index closed at 147.35 points, down 1.09% in a week. Among them, the price of construction steel fell, the average price of mainstream rebar varieties in the main market in the country was 4,132 yuan per ton, down 74 yuan per week. The price of hot-rolled coils fell, and the average market price of hot-rolled products in mainstream markets in the country was 3,967 yuan per ton, down 41 yuan per week. The price of plate has fallen. The average price of the mainstream specifications of the main market in the country is 4048 yuan per ton, down 37 yuan per week.
In the background of the price decline in the spot steel market, the transaction of low-priced resources is relatively better, and the operation of the merchants is more cautious. In May, domestic steel mills were basically at full capacity, steel production remained high, and steel mill profits were compressed due to falling steel prices and rising costs.
At present, the fundamentals of the iron ore market are showing signs of weakness due to the slowdown in the demand for ore replenishment in domestic steel mills. However, the arrival of some varieties is difficult to return to the level of the same period of the year, and the inventory of iron ore ports is still difficult to improve significantly. Even if the mining market is adjusted, it will be a high-level shock.
Recently, according to foreign media reports, US steel prices seem to be affected by 232 tariffs, tinplate prices are rising sharply, tinplate manufacturers will reflect price increases in negotiations with customers in 2019.
It is reported that since the price of hot rolled strip of raw materials for tinplate production has increased, the price of tinplate in the United States has increased by more than $350/ton since last year. US tinplate manufacturers will begin negotiations with customers on prices starting in 2019 this fall. They will ask for a 50% price increase when the tinplate price is at a high market level and a 30% price increase when it is at a low market level, which is in line with the price increase of hot rolled products.
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