SunSirs: The Domestic Mild Steel Plate Prices Rose by 0.89% Last Week

Price trend

Last week, the futures market saw intense trading between bulls and bears, with continued volatility and a cooling of market sentiment. While a few traders offered discounted prices, spot inventories were low, leaving most traders feeling no pressure to sell. Combined with steelmakers holding prices high, prices in various markets remained stable with slight adjustments. According to the SunSirs’ Commodity Market Analysis System, the price of standard medium-sized plate (material: Q235B; specification: 20) was 3,412 RMB/ton on August 8, up 0.89% from Monday.

Influencing Factors

Bill Market: Domestic billet prices saw a slight increase last week. As of August 8, the tax-inclusive price of standard square billet in Tangshan was 3,090 RMB/ton, a 30 RMB/ton increase from the previous week. Inventory levels at major warehouses in Tangshan reached 910,200 tons, an increase of 60,800 tons from the previous week. Market conditions fluctuated last week, with rolling mills purchasing on demand and slowing their purchasing activity. Furthermore, with the military parade scheduled for early next month, rolling mills were not stockpiling billets and were primarily selling as production progresses. Considering the increase in billet inventories and cautious market operations, It’s expected domestic billet prices will fluctuate within a narrow range next week.

Supply and Demand

Last week, high temperatures and heavy rains across the country impacted construction, resulting in a decline in excavator utilization rates and a slowdown in manufacturing production. End-user demand remained low. Futures prices were volatile, with bulls and bears vying for control. End-user purchases were primarily based on demand, with some vendors selling at low prices and selling in large quantities, while most remained cautious and wait-and-see.

Market outlook

As of August 8th, supply and demand fundamentals were weak, futures prices were volatile, and spot prices lacked a clear driver. However, market news was fluctuating, raw material costs were supported, and market expectations are relatively optimistic. It is expected that the domestic mild steel plate market may perform well next week.

If you have any inquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.