1. Price Trend

On August 8, the mainstream price of structural section maintained stable operation, with individual reductions.

2. Market Analysis

Cost: Tangshan billets quoted 3320 RMB, up 10 RMB from yesterday. As the scarcity of some mainstream specification resources in the market some time ago, steel rolling manufactures  noticed the price adjustment on billet price and intended to pull up the price of finished product. This behavior is aimed at testing the market acceptance. And the results showed that the merchants are willing to hold up the price.

Market: Futures prices rose in red all day on August 8. By the end of the afternoon, the price of Futures (2005) was 3617, up 48, at 1.34%. The rising futures price improved the sentiment of the spot market.

Recently, the winter storage policies of some enterprises have been issued in succession. Mostly of them was divided into two forms: guaranteed price and locked price. Although the heat of topic is not reduced, the participation of steel traders is significantly reduced, and then the downstream demand is obviously reduced. The overall transaction situation of profile market is general, and the transaction of high-level resources is poor.

Supply and Demand: Environmental protection and production restriction have been lifted in succession from all over the country. Meanwhile, coupled with the scarcity of resources in the early stage, steel rolling mills have also begun to resume production, gradually replenish steel resources. Therefore, the supply situation has improved. Near the end of year, downstream enterprises have begun to stop production during holidays. In addition, the snowfall weather in the north is frequent, and the industry demand has been weakening.

3. Market Forecasting

On the whole, the resources are scarce and the cost end support turns strong, but the downstream demand situation is not good.

It is expected that the short-term structural section product price will mainly run in a strong volatility.

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