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SunSirs: Domestic plate prices fell sharply in February
March 02 2020 15:40:04SunSirs(Molly)

1. Price Trend

According to SunSirs price monitoring, domestic plate prices fell sharply in February. The price of Puzhong Board (material: Q235B; specification: 20) was 3,672 yuan / ton at the beginning of the month, and 3,406 yuan / ton at the end of the month, down 7.24% from the beginning of the month.

2. Analysis of influencing factors

Due to the impact of the epidemic situation in the first and second working weeks of this month, the resumption of work and the start of school have been delayed in many places, and personnel movements and transportation have been severely restricted. Delays in the start of downstream work have resulted in the continuous accumulation of steel stocks and difficult market circulation. Backlog of resources to steel mills. As a result, domestic plate prices have continued to fall.

In the third working week of this month, domestic plate prices stopped falling and rebounded. In the third week, factories resumed work in many places, and the government was also encouraging the resumption of work. Deals recovered, merchants were in a good mood, and prices stopped falling and rebounded.

With the resumption of work at most factories in the last working week of this month, the steel market would have continued to rise, but due to the expansion of the spread of the epidemic, global stock markets fell sharply, and market pessimism increased. Futures snails opened sharply lower, and the price of building materials was weakly lowered by 30-40 yuan / ton, and the increase at the beginning of the week basically disappeared.

3. Market Forecast

The current steel market demand has not shown an expected pick-up, and social inventory is at a high level and has not yet reached its peak. Although the supply of steel mills will be adjusted in the later period, it is difficult to digest the stock in a timely manner, and the incentive for dealers to actively increase is not strong. . However, this week's rise in steel prices is more of a fix for the earlier panic. Before the demand has not been released in large quantities, the "self-help" type of push up has limited scope, and manufacturers' operations will mainly focus on digesting inventory. Taken together, the steel market will not show a trending rebound in the near future. It is expected that the domestic plate market may stop rising and stabilize.

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