Price trend:

Last week, the macro environment lacked positive factors, and the main rebar futures contract hovered at low levels. The weak supply and demand situation continued, leading to cautious market operations and low-level consolidation in spot prices. According to the SunSirs commodity market analysis system, the price of ordinary mild steel plate (material: Q235B; specification: 20) on November 14th was 3,242 RMB/ton, a decrease of 0.92% compared to Monday.

Influencing Factors

Bill Market: Domestic billet prices weakened last week. As of November 14th, the price of ordinary square billet in Tangshan was 2,930 RMB/ton (including tax). Billet market transactions were weak, while downstream finished steel prices remained stable.

On the demand side, as of November 13, the consumption of mild steel plates last week was 1.5727 million tons, a decrease of 26,700 tons from the previous week, and a month-on-month decrease of 1.11%.

Regarding inventory, week-on-week inventory decreased slightly, but year-on-year inventory levels remained high, indicating continued inventory pressure. As of November 13th, the total social inventory of mild steel plate nationwide was 2.4833 million tons, an increase of 11,200 tons from the previous week.

On the supply side, as of November 13, the operating rate was 90%, unchanged from the previous week; the actual output of steel mills was 1.5819 million tons, a decrease of 15,400 tons from the previous week; the capacity utilization rate of steel mills was 83.16%, a decrease of 0.81% from the previous week; and the inventory of steel mills was 838,000 tons, a decrease of 2,000 tons from the previous week.

Market Forecast:

A cold wave is expected to arrive early next week, causing temperatures to plummet across most of the country and increasing rain and snow in the north. This will impact end-user demand, making the off-season even more pronounced. Overall, with little change in fundamentals during this policy lull, the market remains cautious and is expected to continue its slight fluctuations in the domestic mild steel plate market next week..

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