SunSirs: The Price of Mild Steel Plate Decreased Slightly This Week (11.4-11.8)
November 11 2019 14:12:19 SunSirs (John)
Price trend
According to the data monitoring of SunSirs, the price of mild steel plate decreased slightly this week (November 4, 2019 to November 8, 2019). The price of common medium plate (material: Q235B; specification: 20) was 3638 RMB/ton on November 4 and 3636 RMB/ton on November 8, down 0.05% from the beginning of the week. Judging from the trend of this week, the price of mild steel plate may decrease slightly in a short period of time.
Analysis review
On the first day of the first trading week in November (November 4), domestic commodity futures were volatile and strong, with industrial products and agricultural products indexes rising. Nonferrous metals are stronger, and most varieties are up. Energy and chemical sectors strengthened, among which crude oil, fuel oil and PP rose by more than 1%. The trend of black series is differentiated, and the finished products are stronger than the raw materials. Among them, the market price of construction steel is stable, rising slightly, while that of East China is generally rising; some areas in the north, such as Beijing, Tianjin, Changchun, Harbin and other places, are also rising. The market price of large and medium-sized profiles has risen steadily; the plate market is stable, with individual declines; the hot-rolled coils are stable and strong, with a few areas rising; the prices of cold-rolled coils are steadily decreasing. However, in the last trading day of the first week of November (November 8), the market volume was not satisfactory. Most of the merchants held a negative attitude and the price fell back slightly.
Market outlook
"November has been the traditional off-season of demand. When the demand in October is lower than expected, it is hard to believe that November will have a better performance. As the weather gradually turns cold and the construction sites in the northeast and northwest regions gradually shut down, further weakening of demand will be an inevitable event." The factors that can promote the price rise are nothing more than limited production in the heating season. However, it should be noted that since last year, the limited production in the heating season has made it clear that it will not take a one size fits all approach. Many steel mills spent a lot of money to purchase environmental protection equipment last year. That is to say, they want to expand the market and seize the market when other steel mills stop production. At the same time, they can also reclaim part of the money, so this year's production restriction may not be as optimistic as they think. It is expected that the price of mild steel plate will decrease slightly in the short term.
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