HRB（Hot rolled steel bar）average price breakout RMB5000/ton, An steel increased RMB300/ton, steel price is vibrating and going strong.
After the Spring Festival, the domestic steel market fluctuated strongly, 12 domestic steel mills raised their ex-factory prices by 100-300 yuan/ton. Downstream steel pipe companies have also adjusted their ex-factory prices with raw materials, with a maximum increase of 300 yuan/ton. With the help of futures and steel mills, traders generally raised prices. From the perspective of transactions, since the downstream projects have not yet fully started, most of the market merchants have not officially started construction, the mainstream areas have sporadic transactions, and the overall shipments are less.
For hot-rolled coils, the overall market has risen sharply at present. In the context of the limited production of the Winter Olympics, the demand will gradually improve, the spot market sentiment is relatively optimistic, and the spot prices of steel in various places have risen across the board. As of February 10, the total inventory of the five major steel varieties in the country increased by 4.7747 million tons to 20.3002 million tons, a decrease of 27% from the same period last year and a month-on-month increase of 30.77%.
For hot rolled plate, with the sharp rise of the billet, the price of spot steel plate is mainly increased as well. Among them, the North China region rose actively, and the steel mills took the initiative to raise the price, leading the spot to go up, and the phenomenon of empty rise was more obvious. In terms of demand, downstream enterprises started late, so transactions will not recover significantly in the coming days.
On the macro level, since this year, many departments have successively released signals of steady growth, including moderately advanced infrastructure investment. In terms of cost, the price of raw materials and fuels before the festival was strong, and the cost of steel production increased. In terms of supply and demand, the inventories accumulation rate of steel before the holiday is slower than in previous years, the market is optimistic about the post-holiday expectations, and steel futures are adjusted upwards. In the later stage, infrastructure investment is expected to exert force, but the expansion of the manufacturing industry should also be slowed down, and the real estate market will remain sluggish. The Spring Festival holiday is superimposed on the influence of the Winter Olympics, and many steel mills have implemented maintenance and production reductions. During the Spring Festival, both supply and demand in the steel market were weak, and the accumulation of steel inventories accelerated. In the later period, we will pay attention to the resumption of work and production of upstream and downstream enterprises in the steel industry chain.
It is expected that if the demand starts and under the premise of good deal, the later price will continue to increase. If accompanied by the full start working, the turnover is not good, the price will gradually weaken. If you have the orders in hand, the delivery time is not particularly urgent, the decision can be made after determining the direction of steel price adjustment in the next two weeks. If the order delivery time is urgent, it is a workable time to take the action.
