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SunSirs: The Price of Color Coated Sheet Has Risen Steadily in This Week (July 3-10)

July 13 2020 14:53:33     SunSirs (John)

Price trend

According to the price monitoring of SunSirs, the price of color coated sheet has been rising steadily this week(July 3-10). As of July 10, the spot price of Baosteel 0.5*1200*C color coated sheet in Shanghai area was about 7,200 RMB/ton, an increase of 0.79% from last week by about 60 RMB/ton, and an increase of 1.44% about 100 RMB/ton from the beginning of July..

Analysis review

The prices of raw materials have risen, and steel mills have a strong desire to push prices. This week, the Tangshan Municipal Government issued the "Urgent Notice on Further Strict Control". Due to poor air quality, it is requested to stop production of some steel companies from July 5th. If the production limit can be carried out as expected, may alleviate some of the inventory pressure, to play a supporting role in steel prices.

As of the 10th, the operating rate of 247 blast furnaces nationwide was 90.63%, a decrease of 0.39% from the previous week, and the capacity utilization rate was 93.08%, a decrease of 0.27% from the previous week; the operating rate of the color-coated steel plant was 90.09%, and the capacity utilization rate was 73.37 %, the weekly output was about 203,000 tons, an increase of 0.1% from the previous week, and the social stock of color-coated steel was about 190,900 tons. In terms of downstream demand, according to statistics from the China Automobile Association, in the first half of June, the production and sales of 11 key enterprises totaled 1.427 million and 1.083 million respectively, an increase of 25.8% and 18.1% from the previous month, and an increase of 45.9% and 15.7% from the same period last year. From the perspective of supply and demand, it is still the off-season of the rainy season, and the total steel inventory is still about 30% higher than that of the same period last year, and the accumulation pressure is still there.

In terms of the market, according to feedback from downstream distributors, the recent arrival in the northern market has been slow, which has led to a serious shortage of some specifications of color coated sheet in the spot market, which has played a supporting role in prices. The prices of color-coated coils in Jiangsu, Zhejiang and Shanghai areas remained at a high level of consolidation, and transactions were mainly on-demand shipments. Due to the continuous rainy weather and the off-season of steel, merchants' expectations for the future price increase were low, hoping to sell at a stable price mainly.

Market outlook

Steel mills have strong willingness to stand out, and raw material prices continue to rise, and steel enterprises in Tangshan area limit production and other reasons, which may support the price. In the case of continuous weakening of downstream demand, the price of color coated sheet will maintain a high consolidation operation in the short term.

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