The transaction is relatively cautious. The price fluctuation of spiral tube before the holiday will gradually narrow
The global market has been relatively stable recently, but the black series closed down in the night trading. The day’s continued weakness has led to a decline in the spot market. The transaction is relatively cautious, and the price fluctuations of the spiral tube before the holiday will gradually narrow.
Futures steel closed down across the board, and the spot part fell slightly.
Today's market: snail futures fell 38 to close at 5358, papers fell 56 to close at 5691, iron ore fell 12 to close at 1138.5, coking coal fell 28.5 to close at 1757, and coke fell 2 to close at 2683.
According to market data, the average price of 20mm HRB400E rebar in 24 major markets across the country is 5197 yuan/ton, down 12 yuan/ton from the previous trading day. The average price of 4.75 hot-rolled coils in 24 major markets across the country was 5,729 yuan/ton, down by 26 yuan/ton from the previous trading day. The average price of 14-20mm general plate in 23 major markets across the country was 5,691 yuan/ton, down 1 yuan/ton from the previous trading day.
The profit of steel enterprises increased sharply year-on-year, and the motivation to increase production remained unchanged.
Data shows that in the first quarter, China Steel Association's member steel companies had revenue of 1541.7 billion yuan, a year-on-year increase of 52.28%, and realized profits and taxes of 100.4 billion yuan, a year-on-year increase of 159.94%; total profits were 73.4 billion yuan, a year-on-year increase of 247.44%. On the whole, loss-making companies in the steel industry have decreased, with a year-on-year decrease of 13.63 percentage points, which is related to the peak consumption season and the recovery of profit margins for steel prices.
The actual steel consumption of the steel industry increased by 47% in the first quarter, of which the construction industry grew by 49% and the manufacturing industry grew by 44%. The apparent consumption of crude steel was 258.96 million tons, an increase of 15.3% over the same period last year. However, exports have rebounded significantly. According to data from the General Administration of Customs, in the first quarter, cumulative steel exports increased by 23.8% year-on-year, and imports increased by 17% year-on-year. The demand pull is obvious.
At the same time, the rebound in profits has brought about an increase in production. In the first quarter, my country's crude steel output increased by 15.6% year-on-year, and 17.3% compared with the first quarter of 2019. The two-year average growth rate was 8.3%, which was a decrease of 0.03% compared with the fourth quarter of last year. Pay attention to the scope and implementation of subsequent production restrictions. At present, the supply and demand side continues to improve, and the inventory pressure continues to ease.
Scrap steel prices are raised by 10-100, cost support is strong
The recent trend of raw materials is strong, and scrap purchase prices are mostly raised today. Among them, Jingye Steel has raised its scrap purchase price by 10-60 yuan/ton from April 28, Shandong Rizhao by 50 yuan/ton, Hebei Jiujiang by 100 yuan/ton, incomplete statistics, 33 steel mills across the country raised today The scrap purchase price is 10-100 yuan/ton. As the profit margin of electric furnaces rebounds, the motivation to increase production has strengthened, the supply and demand side has been relatively tightened, and the cost has risen, and the support for finished products is still strong.
Billet inventory increased slightly
Tangshan billet prices have slowed down recently. In terms of inventory, the three major warehouses have a total of 273,200 tons of billet stocks, an increase of 15,000 tons. Among them, Xiangyu Zhengfeng Library's billet inventory was 95,400 tons, an increase of 5,900 tons; Haiyi Hongrun Library's billet inventory was 147,100 tons, an increase of 7,700 tons; Material Zhenxiang's billet inventory was 30,700 tons, an increase of 14,000 tons. The small increase in inventory means that the supply is short-term abundant, and the price of billet in early trading has stabilized, but the warehouse price has been lowered.
In summary, the market long and short factors are mixed. Steel prices continue to rise. Merchants mainly deliver profits. The decline in futures steel affects market quotation mentality. Some markets weaken slightly. Pay attention to the early morning of Thursday, April 29, when the Federal Reserve announced the interest rate decision. The impact of the capital market. The price volatility of spiral pipes before the holiday has gradually slowed down, and the market is mainly waiting and watching. The decline in some markets will not affect the medium-term bullish trend.