July 17 steel price index accelerated

On July 17, the comprehensive index of the steel index (Myspic) was reported at 143.0 points, which was a decrease of 0.49% from the previous day, and the decline continued to increase. Under the pressure of supply and demand, Baosteel futures prices fell sharply, raw material prices also fell under the pressure, today's domestic steel spot market decline is difficult to ease, a variety of varieties deeper decline, including hot rolled coil market accelerated downward trend.

According to data from the China Iron and Steel Association, the daily production of crude steel in June is still at a high of more than 2 million tons, while most areas in the south are still in rainy weather. The market demand continues to slump, and the steel market is still in sharp supply. In addition, after Baosteel's August futures price was substantially lowered, Shougang and Angang lowered the prices of hot-rolled coils by RMB 50-150/ton, and the steel mills were bearish on the outlook. In addition, the price of steel billets, which had continued to maintain strong prices, fell sharply. The weekend has so far totaled 110 yuan/ton, and the cost of steel prices has also weakened. On the whole, in the absence of a clear positive boost, the domestic steel market will continue to be dominated by weaker operating conditions in the short term.

On July 17, the flat product index reported 126.6 points, a decrease of 0.52% from the previous day, and the decline continued to increase. Among them, the plate and hot rolled coil index fell by 0.57% and 0.78% respectively. The prices of the plate market in the country were generally retrenched today. The leading markets in North, Shanghai, Guangzhou, and Tianjin continued to decline. In Chengdu and Nanjing, the decline was relatively large in a few areas. The situation of market shipments was generally poor. With the sharp decline in futures and electronic trading, business confidence has been hit. Prices in the Shanghai market have been falling at an accelerated pace, and most businesses have accelerated their decline to attract transactions. In addition to the drastic drop in the price of Tangshan mid-table, the Beijing-Tianjin-Hebei region has generally fallen below 3800 yuan/ton in addition to the Beijing market. The Lecong market was affected by the arrival of low-cost northern low-cost resources in the previous period, and the companies have lowered their quotation and have not shown signs of stabilizing. Downstream demand shrank, steel prices fell sharply, and prices did not improve after prices fell. Businesses generally have poor expectations for the market outlook. It is expected that the mid-board market will not be able to get out of the downturn in the short term. On the 17th, the market price of the 20mm middle plate in Chengdu market fell by 60 yuan/ton compared with the previous trading day.

Today, the domestic hot-rolled coil market as a whole declined, and the decline was larger than yesterday. The Shanghai and Tianjin markets that stabilized yesterday fell sharply, with declines generally ranging from 50-70 yuan/ton. Opening early in the morning, market prices in Tianjin and Shanghai fell sharply, prices continued to fall, fell below the psychological defense of businesses. The market was lightly traded, and there was less circulation among traders. Under the situation of buying up or not buying, the market demand was also purchased on demand. In addition, banks recently tightened their loans to the steel trade industry, while leading steel mills such as Baosteel and Anshan Iron and Steel also lowered their ex-factory prices significantly. For a time, pessimism in the market spread, and most businesses expressed that they would be cautious when they continued to decline. On July 17th, hot-rolled 3.0mm prices in Shanghai, Tianjin, Hangzhou and other markets fell by 50-70 yuan/ton compared with the previous trading day.

On July 17th, the decline of the long products index narrowed slightly to 162.0 points, which was a decrease of 0.47% from the previous trading day. The main screw of the 1310 contract fluctuates and falls to 3861 yuan, down 1.15%. Today, the national building materials market continues to oscillate downward trend, the overall performance of the market is still unsatisfactory, the pressure of merchants to ship is relatively large, prices in leading markets such as Shanghai and Beijing still fall slightly, and a few areas such as Taiyuan have fallen at 40-50 yuan/ton. In June, domestic crude steel production was still at a high level, while downstream demand was further suppressed due to the rainy weather, and the contradiction between supply and demand was still sharp. In addition, the price of steel billets, which had continued to maintain strong prices, fell sharply, and it has fallen by RMB 110/ton since the end of last week. The cost support for steel prices has weakened. Coupled with the continuous fall in the futures market, constantly refreshing the lowest in the year, it also hit the spot market confidence. In general, the prices of leading steel mills have been significantly reduced, and market demand has not been able to improve. The market is waiting to see a strong atmosphere. In the short term, the weakness of the building materials market will be difficult to reverse. On July 17th, quotation for HRB33520mm in Shanghai and Beijing market fell by 30-40 yuan/ton from the previous trading day.