After the Labor Day, the futures rebar contract is weak and downward, terminal purchases are intended to slow down, terminal purchases were slowing down, market transactions were not good, and steel prices in many places were stable or falling; then the central enterprises announced a reduction in reserve requirement ratio and interest rate, but the reduction was less than market expectations, the market briefly rose and then fell, and most steel markets were holding steady and waiting. According to the commodity market analysis system of SunSirs , the price of ordinary mild steel plate (material: Q235B; specification: 20) was 3442 RMB/ton on May 9, which was the same as before the holiday.

1. Influencing factors

Bill market: This week, domestic billet prices fluctuated and fell slightly. As of May 9, the tax-inclusive price of Tangshan ordinary square billet was 2930 RMB/ton, a weekly decrease of 10 RMB/ton. In terms of inventory, Tangshan's main warehouse inventory was 684,900 tons, an increase of 24,300 tons from last week.

After the holiday, the futures market fluctuated downward, terminal downstream demand declined, finished product prices fell weakly, steel companies slowed down billet purchases, and major warehouse inventories accumulated slightly. Considering that the cost support is weak and some steel companies are expected to undergo maintenance, it is expected that the domestic billet market will fluctuate and run weakly next week.

Supply and demand

From the perspective of social inventory, the cumulative inventory of rebar in major sample cities across the country is 4.6728 million tons, a weekly decrease of 56,700 tons; the cumulative inventory of wire rod is 638,400 tons, a weekly decrease of 4,100 tons; the cumulative inventory of the five major steel varieties is 10.3951 million tons, a weekly increase of 92,800 tons.

2. Analysis and Forecast

On the whole, affected by the "May Day" holiday, the terminal apparent demand has declined significantly, the decline in social inventory of rebar has slowed down, and the inventory of plate has even stopped falling and increased. At the same time, domestic molten iron production has risen to a high level, and the traditional peak season in the first half of the year is coming to an end. Some merchants choose to reduce prices and maintain low inventory operations. It is expected that the domestic mild steel plate market will be weak in the short term.

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