SunSirs: The Demand for Terminal Purchases is Limited, and the Market for Mild Steel Plates is Uncertain

This week, the north is hot and humid, and many places in the south have frequent rainfall. Outdoor construction and transportation are restricted, and the demand for terminal purchases is limited. The futures screw plate is fluctuating in a range, and the spot market has no direction, with the quotation fluctuating up and down by 10 RMB/ton. According to the commodity market analysis system of SunSirs, the price of ordinary medium plate (material: Q235B; specification: 20) was 3242 RMB/ton on June 23, up 0.31% from Monday.

1. Influencing factors

Steel billet market: This week, domestic steel billet prices rose steadily. As of June 20, the tax-inclusive price of Tangshan ordinary square billet was 2920 RMB/ton, up 20 RMB/ton from the previous week. In terms of inventory, Tangshan's main warehouse inventory was 535,600 tons, down 4,600 tons from last week. Due to the decline in the operating rate of rolling mills, the supply of billets has weakened. At the same time, the export orders of steel billets are still acceptable, and the market billet inventory is at a low level. Considering the weak operation of raw materials, the decline in cost support, and the weak demand expectations in the off-season, it is expected that the domestic billet market will fluctuate and adjust weakly next week.

Supply and demand

During the high temperature and plum rain season this week, normal outdoor construction is restricted, terminal procurement demand is reduced, the off-season demand characteristics are obvious, and spot transactions are relatively weak.

2. Analysis and forecast

On the whole, under the influence of high temperature and rain, the off-season characteristics of demand are obvious, and the market sentiment is relatively sluggish. The upper side is constrained by the off-season demand and the downward shift of costs, and the lower side is constrained by low inventory and production decline. The direction of the spot market is difficult to distinguish, and the quotations in various places are mainly stable. Based on the weak fundamentals of supply and demand, there is no positive macroeconomic policy for the time being, some commodities have been disturbed, and market operations are relatively cautious. It is expected that the domestic mild steel plates market will be weak and stable in the short term.

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