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304 stainless steel with low inventory has become the norm - market Tianjin stainless steel co. , LTD
by：Hongmei
2020-09-06
Since late April, under the background of 304 stainless steel with a sharp rebound, steel prices rising, the market clinch a deal, will affect inventory has fallen sharply.
Downstream end demand has a striking lack of follow up, however, it is difficult to continue to push up on steel prices.
Though, with the CPI, PPI and other related economic indicators released, weaker economic fundamentals, facing strong easing expectations, but strong short-term economic stimulus is less likely.
On Friday, the central bank made it clear that will not be issued amount of policy easing.
The current steel prices rebound, investigate its reason, on the basis of the rebound in crude oil, in addition to the news of the mine production lead to form, the steel industry fundamentals did not produce significant improvements, rapid rebound after the steel price is facing greater pressure adjustment.
Under this background, the iron ore futures bull advantage good news and of low inventory, successful squeeze, bring up iron ore futures.
Spot miners also will push up prices, to the highest point last week, platts index 62% iron ore, rebounded to 61.
75 dollars.
But as ore prices higher, some small and medium-sized began production in mines, and atlas immediately declared a moratorium on the production in mines, continue to maintain production.
As a result, the first weekend, 304 stainless steel belt gradually adjusted, fell below $60.
Until now, the short-term news surface, not really change the reality of iron ore market oversupply, from originally said, leading international mining cost under $50, especially Rio tinto costs only about $38, production of steam.
Most market analysis, ore price after rising sharply hype, will gradually return to rational, the middle is still in a downward spiral.
Part and short term profit resources more, price lower risk.
weak coking coal prices in north China this week. Experienced early coking enterprises focus after shipment, the recent a slightly alleviate coking plant inventory. However, subject to the limit of the shenhua level of coke and purchase prices fell, hebei iron and steel continue to cut this month 10 - coke procurement price Late 30 yuan/ton, other steel mills or will drop. Expected short-term market will remain steady small drop. Scrap steel market: this week in east China scrap steel prices fluctuated in stability, trading without too much change. As the ore market price is higher, scrap steel prices have stabilized. But because demand is not yet fully open, steel mills and foundries purchase scrap amount is still not high, prices are relatively low, lead to scrap steel market pull up still difficult. Expected short-term domestic steel scrap prices is given priority to with stability. From inventory, this week, Shanghai construction steel stocks continued to decline, recent north-south gap continues to shrink, the northern material delivery quantity is not much, market resources is given priority to with jiangsu region steel mills. And from the point of the national steel inventories, this week the national inventories fell for the eighth consecutive weeks, the cumulative decline in 14. 29%, the current inventory levels fell 16. 96%. In market expectations, steel trade, generally do not stock, 304 stainless steel with low market inventory has become the norm, inventory pressures are mainly concentrated in steel mills.
weak coking coal prices in north China this week. Experienced early coking enterprises focus after shipment, the recent a slightly alleviate coking plant inventory. However, subject to the limit of the shenhua level of coke and purchase prices fell, hebei iron and steel continue to cut this month 10 - coke procurement price Late 30 yuan/ton, other steel mills or will drop. Expected short-term market will remain steady small drop. Scrap steel market: this week in east China scrap steel prices fluctuated in stability, trading without too much change. As the ore market price is higher, scrap steel prices have stabilized. But because demand is not yet fully open, steel mills and foundries purchase scrap amount is still not high, prices are relatively low, lead to scrap steel market pull up still difficult. Expected short-term domestic steel scrap prices is given priority to with stability. From inventory, this week, Shanghai construction steel stocks continued to decline, recent north-south gap continues to shrink, the northern material delivery quantity is not much, market resources is given priority to with jiangsu region steel mills. And from the point of the national steel inventories, this week the national inventories fell for the eighth consecutive weeks, the cumulative decline in 14. 29%, the current inventory levels fell 16. 96%. In market expectations, steel trade, generally do not stock, 304 stainless steel with low market inventory has become the norm, inventory pressures are mainly concentrated in steel mills.
