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SunSirs: The pace of resumption of work is accelerating, mild steel plate's price rose 2.52% (03.02-03.06)
March 09 2020 11:19:17SunSirs(Molly)

1. Price trend

According to SunSirs price monitoring, the price of plate this week (March 02, 2020-March 06, 2020) rose. Puzhong Board (Material: Q235B; Specification: 20) The price on March 02 was 3406 yuan / ton, and the price on March 06 was 3492 yuan / ton, up 2.52% from the beginning of the week. Looking at the trend this week, it is expected that short-term plate prices may rise slightly.

2. Analysis of influencing factors

Market situation: Terminal demand is gradually released this week, and the transaction situation is obviously higher than last week. Specifically, at the beginning of the week, the market had a positive trading atmosphere and the transactions were concentrated. On Tuesday, after prices rose, high-level resource transactions were sluggish and transactions were weak. On Wednesday, demand picked up again and transactions were remarkable. Overall, although the transaction situation has improved, it is still lower than the same period of previous years, indicating that a full recovery of demand still needs a process. Driven by the phase of steel, the phased demand is released intensively, the market volume and price have risen, and the inventory has been digested. The continued rise in steel has once again boosted the market mentality.

Favorable policies: The central bank, the China Banking Regulatory Commission and other departments have successively issued a number of important documents. Financial policies have been intensively implemented. Financial support for epidemic prevention and control and resumption of production have been deployed. The spot atmosphere has significantly eased compared to yesterday, and the transaction volume has increased.

Favorable international situation: On the second trading day of the week, the Fed's emergency interest rate cut failed to boost the US stock market. The three major stock indexes closed sharply across the board. On Tuesday, the opening period opened lower. The spot market performance was cautiously weak, and merchants' bids were slightly loose. Driven by the higher steel prices during the session, traders were willing to pick up prices, and low-level transactions improved.

3. Forecast

After entering March, the pace of resumption of work in various places across the country has accelerated, and terminal demand has been partially released, especially in parts of East China, Southwest China, and South China, and shipments have increased significantly month-on-month. Encouraged by the rebound of the futures market at a low level and the recovery of the demand side, domestic building material prices no longer weakened unilaterally, and the overall trend showed a slight fluctuation. At present, the market is facing a more complicated environment: on the macro level, the domestic epidemic control has begun to bear fruit, and the order of social life is recovering. However, the epidemic situation abroad is becoming severe, and the global financial market is in turbulence. In terms of industry, domestic building material inventory The record high, manufacturers are under increasing pressure to destock, but downstream demand is gradually recovering, and market transactions are gradually on track. Considering that the supply side will shrink in the later period, the willingness of leading steel mills to increase prices will increase, and the demand side will gradually improve, and the impact of the capital market on the spot will be more frequent. It is expected that the short-term plate price may rise slightly.

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