SunSirs: Supply and Demand Balance, China's Color Coated Sheet Rolls up Steadily

1. Price Trend

According to SunSirs data statistics, the price of color coated rolls rose steadily last week, and on 15^th, the price of color coated rolls is stable. According to the dealer's quotation, the spot price of 0.5*1200*C in Shanghai was about 7,060 yuan/ton, which was stable compared with last Friday, and it is 5.24% higher than that in early June by about 380 yuan/ton.

2. Factors affecting prices

On the supply side, according to relevant data, as of June 12, the total amount of color-coated social stocks was 178,300 tons, an increase of 1.6% from last week and about 28,800 tons. Among them, the central depot dropped the fastest in China, reaching 9.16%. The regional inventory volume increased the most, reaching 8.28%, and the inventory level in the northwest and southwest regions remained basically the same as last week.

For steel mills, Baosteel introduced the July steel price adjustment policy on June 9. The base price of hot-rolled and cold-rolled coils was raised by 280 yuan/ton; the base price of color coating was raised by 100 yuan/ton, and the price of high aluminum zinc aluminum magnesium magnesium color coating was increased by 20 yuan/ tons, steel mills have strong willingness to push prices, or they may support spot prices. As of the 12th, the nationwide color-coated steel mills had a 90.09% operating rate, a capacity utilization rate of 73.1%, a decrease of 0.11% from the previous week, and a weekly output of 200,200 tons, a decrease of 0.03 million from the previous week. The supply of steel mills continues to shrink, social stocks decline steadily, and supply and demand can basically maintain a balance.

In terms of downstream demand, according to the latest data released by the China Association of Automobile Manufacturers, China's automobile production and sales in May reached 2.187 million and 2.194 million, respectively, up 18.2% and 14.5% year-on-year, and the growth rates were higher than April's 15.9% and 10.1 %. Among them, sales of passenger cars in May were 1.674 million units, a year-on-year increase of 7.0%. The downstream automotive industry is recovering, and consumer demand is accelerating.

Today's Shanghai market Baosteel Color Coated Sheet Coil 0.3*1000*C TDC51D+Z specifications average price 7740 yuan/ton, 0.3*1200*C TDC51D+Z specifications average price 7740 yuan/ton 0.4*1000*C TDC51D+Z specifications average price 7,540 yuan/ton; Hangzhou market Maanshan Color Coated Coil 0.3*1000*C TSGCC 6,380 specifications average price yuan/ton, 0.4*1000*C TSGCC specifications average price 6,290 yuan/ton, 0.45*1000*C TSGCC specifications average price 6,090 yuan /Ton, prices are running smoothly. According to dealers, the supply and demand of finished materials are basically balanced, and there is not much inventory pressure. Today's market transaction performance is general, with shipments on demand mainly. Today's hot-roll main contract closed at 3,533 yuan/ton, down 17 yuan/ton from the previous trading day.

3. Future market forecast

Steel mills continue to reduce production, supply and demand basically maintain a balance, and cost as a strong support, it is expected that the color coated steel coil will rise steadily this week.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.