Thread Content
Customs statistics show that in January, both the import and export of steel in China declined significantly; 1.91 million tons of steel were exported, a decrease of 53.8% compared to the previous year. This is also the lowest level for domestic steel exports since March 2006. Media reports citing officials from the China Iron and Steel Association state that exports of less than 2 million tons are far too low compared to China’s production capacity of 500 million to 600 million tons. After rising for 9 consecutive weeks starting from December last year, the domestic steel market experienced a slight decline this week. The MyspiC composite index (My Steel Price Index, which is the abbreviation for Mysteel price indices of China) stood at 141.0, up 0.6% from the same period last month ； Among them, MyspiC’s flat product index was 123.8, down 0.2% from the previous month ； The long goods index was 155.1, up 1.2% from the previous month. The trends for various specific steel grades are as follows: prices of construction steel have seen a slight decline, with the drop in Chengdu and Chongqing areas being over 200 yuan per ton ； Medium and thick steel plates saw a slight decline, with price drops of over 150 yuan per ton in Chongqing, Chengdu, Beijing, and Tianjin ； After a significant price surge last week, cold and hot-rolled coils saw a substantial decline this week, dropping back to levels seen before the Spring Festival by the weekend ； The decline in the prices of large and medium-sized materials is around 10 yuan per ton. Construction steel: Due to a lack of trading volume, the sharp rise seen last week was reversed this week. In major cities such as Shanghai, Hangzhou, Guangzhou, and Xi’an, the price drop was around 100 yuan per ton, while in Chengdu and Chongqing the drop was more significant, at 220 yuan per ton ； The average range in the remaining areas is around 50 yuan. As of this Thursday, the average price of 20mm rebar in China’s major markets was 3,916 yuan per ton, down 72 yuan per ton from the previous week ； The average price of 6.5mm high-speed steel was 3,897 yuan per ton, down by 82 yuan per ton compared to the previous week. On the side of steel mills: According to Mysteel’s statistics, this week 15 rebar manufacturers in China adjusted their ex-plant prices, and 10 wire rod manufacturers did the same; among them, only 2 steel mills raised their ex-plant prices. In terms of the market: **Construction projects have not started on a large scale yet, and there has been no significant increase in market trading volume. However, inventory levels in the market continue to rise. Out of caution, market sales prices have dropped back to the levels seen before the Spring Festival.** Currently, the lowest price for rebar across the country is in the Shanghai area, where the price of HRB335 rebar is 3630 yuan per ton. The highest price is found in the Kunming area, where the price of HRB335 rebar is 4250 yuan per ton. Nationwide, there are several factors at present that will influence future market trends and deserve attention: first, the commencement of major projects one after another. The eastern section of the West-East Gas Pipeline Project 2, with a total investment of 142.2 billion yuan, officially commenced construction in Shenzhen, Guangdong on the 7th. Secondly, it is reported that this year the Beijing-Shanghai High-Speed Railway has set a target of completing 60 billion yuan in capital investment, for which 2 million tons of steel are required. Third, the market liquidity has **improved**, and is even somewhat loose. In January, RMB loans increased by 1.62 trillion yuan that month, 814.1 billion yuan more than in the same period of the previous year, setting a record for all time. Fourth, the prices of coke and scrap steel have remained stable at high levels recently; compared to steel prices, the costs of raw materials used in steel production are relatively high. Therefore, we expect no reason for a significant drop in construction steel prices in the near term, and domestic construction steel market prices are likely to remain relatively stable next week. Medium and heavy gauge steel: There was an overall slight decline in prices; in 9 cities such as Nanjing, Jinan, Zhengzhou, Beijing, and Chengdu, the price drop was 100 yuan per ton, while in the remaining markets the drop was around 50–100 yuan per ton. As of this Thursday, the average price of 20mm medium plates in 23 major markets across the country was 3,943 yuan per ton, down 72 yuan per ton from the previous week. On the side of steel mills: This week, 4 domestic medium and heavy plate manufacturers reduced their ex-plant prices by a small amount, with the average reduction being 30–60 yuan per ton. In terms of the market: Affected by the significant drop in the prices of hot-rolled coils, the prices of medium and thick plates also decreased slightly, with low sales volumes in the market. Over the weekend, the prices of standard plates produced by major steel mills in the Shanghai market, with a thickness of 16–20 mm, remained stable at 3950–4000 yuan per ton, remaining roughly the same as last week. The prices of other types of plates were also stable. The typical selling price for CCSA plates with a thickness of 12–20 mm was 3950–4000 yuan per ton, while the average price for boiler plates and 16MnR container plates with a thickness of 14–20 mm was 4200–4250 yuan per ton. Current actual transaction prices in various markets: for 20mm medium-thick steel plates, the price in Shanghai is generally between 3950 and 4000 yuan per ton, 4020 yuan per ton in Guangzhou, and 3750 yuan per ton in Tianjin. It is worth noting that on the 11th, the Premier of the State Council presided over an executive meeting of the State Council, at which the Plan for the Adjustment and Revitalization of the shipbuilding industry was reviewed and approved in principle. The domestic medium and heavy plate market is expected to remain relatively stable during the Spring Festival period. Cold and hot coil prices: Overall decline. Following the drops this week, prices of the main types of hot coils have returned to their levels prior to the holiday period. In areas such as Shanghai, Nanjing, and Hangzhou, the reduction in the price of hot-rolled steel is around 100–120 yuan per ton; in Tianjin, Beijing, and Shijiazhuang, the reduction is 150–200 yuan per ton ； The price reduction for cold-rolled steel in markets such as Nanjing, Wuhan, and Tianjin is also 100 yuan per ton. As of this Thursday, the average price of 3.0mm hot-rolled coils in major domestic markets was 4,048 yuan per ton, down 135 yuan per ton from the previous week ； The price of 1.0mm cold-plate coils is 4,681 yuan per ton, down by 77 yuan per ton compared to the previous week. Hot-rolled coils: On the weekend, in the Shanghai market, the transaction price for thick-gauge hot coils with dimensions of 5.5–11.5*1500 was 3650–3700 yuan per ton, which is 150 yuan per ton lower than last week’s price. Cold-rolled coils: In the Shanghai market, the price of 1.0mm Ansteel cold-rolled sheets on weekends is 4550 yuan per ton ； The price of 1.0mm cold coils from Shougang and Magang is 4,350–4,380 yuan per ton. Two factors warrant market attention: first, a certain volume of imported hot-rolled steel is set to arrive in the near future, and these goods were priced at the rates in effect at the end of last year. Secondly, at the current price of hot-rolled coils, the operating rate of domestic steel mills for producing such coils is only around 80%. Based on this, we expect the domestic cold and hot-rolled steel markets to continue to show a slight downward trend in the coming week. Large and medium-sized materials: The market saw a slight overall decline. As of this Thursday, the average prices in 23 major markets across the country are as follows: 25# I-beams cost 4,118 yuan per ton, down 7 yuan per ton from the previous week; 5# angle irons cost 3,948 yuan per ton, down 11 yuan per ton from the previous week; the average price of 16# channel irons nationwide was 3,924 yuan per ton, down 12 yuan per ton from the previous week. It is expected that domestic profile prices will see a slight decline while remaining stable in the coming week. This post was last edited by laomao123 on 2009-2-15 at 19:59.]