Daily Comment: Steel prices are fluctuating and running down space is limited

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Today's hot spot

Today, the black commodity futures are weak, the finished product contracts are weak, the raw material contracts are second, and the disk profit continues to narrow. Judging from the position of the position, the rebar contract has increased its position by more than 180,000 hands today. There are many small and negative lines on the time-sharing line. There is still room for exploration in the short term. However, it is not necessary to rule out the possibility of stabilization. Go low. In terms of spot, today's spot stocks are still weakly adjusted, with rebar falling by a large margin of RMB 30/ton. From the current situation, the weak demand combined with the market cashing sentiment makes the price delayed from the adjustment cycle. However, due to the limited inventory pressure, the business mentality is not pessimistic, and the wait-and-see mood is relatively strong, so the short-term price has fallen sharply. In addition, the support of cost will be apparent with the gradual adjustment of prices. It is expected that short-term domestic steel prices will fluctuate and there will be limited space for exploration.

Macro hotspot

1. [Domestic commodity futures mostly closed down, black is in the top] glass, thread, coke closed down more than 2%, hot coil, coking coal, Zheng coal, rubber, manganese silicon, Shanghai copper fell more than 1%, Shanghai nickel, Vegetable, Shanghai, Shanghai, Shanghai, PVC, iron ore, soybean meal, Shanghai zinc, eggs, Shanghai silver, Shanghai gold, ferrosilicon, sugar, etc. closed down. Apple, crude oil, etc. rose more than 1%, Zheng alcohol, corn, Shanghai lead and so on closed up.

2. [Index is adjusted in the afternoon, the carbon black and shale gas sectors are strong]

The Shanghai Composite Index closed at 3,159.15 points, down 0.07%, with a turnover of 153.5 billion.

The Shenzhen Component Index closed at 10,689.07 points, down 0.17%, with a turnover of 229.1 billion.

The GEM closed at 1855.81 points, down 0.06%, with a turnover of 82.6 billion.

3, [Ou oil in the European market quickly pulled up, rising more than 2 US dollars in the day, reported 77 US dollars / barrel, a record high since November 2014. WTI crude oil broke through the 71 mark and rose 2.9% in the day to $71.06 per barrel, the highest since November 2014. 】

4. [Ministry of Commerce: China has accepted invitations to send delegations to the United States for economic and trade consultations] The Chinese side has received a letter from the US Treasury Secretary Mr. Mnuchin, officially inviting President Xi Jinping, special envoy of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, China and the United States. Liu He, the leader of the comprehensive economic dialogue, visited the United States and continued consultations on bilateral economic and trade issues. The Chinese side has accepted the invitation and agreed to go to the United States for consultations at an appropriate time. The working teams of both sides are maintaining close communication.

Market today

Raw material

Billet: The price of the national billet market is weakening. Tangshan billet fell 40 yuan / ton, Shandong steel billet rose 10 yuan / ton, Jiangsu steel billet fell 40 yuan / ton, Shanxi slab fell 10 yuan / ton. Today, Tangshan billet straight hair transactions in general, warehousing spot 3620-3640 yuan / ton including tax out of the warehouse, some low-cost resources have transactions, high-priced shipments are blocked, downstream low-cost resources of some finished products are still acceptable, the overall generally weak. Today, Shandong steel billet rose 10 yuan / ton, Q235 billet factory 3670-3680 yuan / ton, steel mills can take orders, save the negotiable space, some steel enterprises blast furnaces are not smooth outside the steel billet, the middlemen rallies.

Domestic mines: The market of domestically produced main producing areas is stable. Prices in North China, East China, Northeast China and South China are temporarily stable. Specifically, North China-Tangshan 66% dry-based tax-included cash factory 625-635 yuan / ton, moved to the West 66% dry-based tax-included cash out of 610-620 yuan / ton, Qian'an 66% dry basis tax-included cash factory 635-645 yuan / ton; Zunhua 66% dry basis tax-included cash factory 610-620 yuan / ton.

Imported mines: The offer of traders this morning was basically the same as yesterday. Only some traders lowered their prices by 5 yuan/ton. The offer was higher, but the willingness to ship at low prices was not strong. The willingness of steel mills to get goods was not strong. The price of the plate is low, and the buyers and sellers play the game. In the afternoon, the disk was lower, the traders were more willing to pay the price, the steel mills' willingness to get goods was further weakened, and the market transactions were relatively deserted.

Steel spot

Construction steel: Today's domestic construction steel prices fell slightly. In terms of specific prices, the average price of 25 major cities nationwide was 4,137 yuan / ton, down 30 yuan / ton from the previous trading day, of which Hangzhou, Hefei, Fuzhou, Nanning, Changsha and Guiyang fell more than 50 yuan / ton, the rest of the region The decline ranged from 20-40 yuan/ton. In terms of specific markets, the market prices in the early morning and early days were slightly loose, the market transactions were not good, and the low-priced resources in the market were reappeared. At present, some steel mills will introduce a mid-price policy in the near future. The wait-and-see attitude of the merchants is strong, and the cost and inventory support for the price will gradually strengthen. On the whole, it is expected that domestic construction steel or narrow-scale adjustment will be the main short-term.

Hot-rolled coils: Today's hot rolling prices in 24 major cities nationwide fell slightly. The average price of 3.0 hot-rolled coils was 4,242 yuan/ton, down 20 yuan/ton from the previous trading day, and the national average price of 4.75 hot-rolled coils was 4186. Yuan/ton, down 18 yuan/ton from the previous trading day. Today's futures market fluctuated downwards, market confidence was relatively weak, and merchants' prices fell slightly. Downstream wait-and-see mood is strong, procurement enthusiasm is not high, market transactions are generally poor, and market prices continue to fall in the afternoon. However, the current market inventory is not high overall, the pressure on merchants is not large, and the space for price adjustment is limited. In addition, today's billet market price fell 40 yuan / ton, the current carbon billet price is 3550 yuan / ton. On the whole, it is expected that the price of the hot-rolled market will be weaker tomorrow.

Plate: Today, the domestic plate market price fell slightly. The average price of 20mm plate in 23 major cities nationwide was 4,401 yuan / ton, down 10 yuan / ton from the previous trading day. Affected by the decline in the futures market, the market wait-and-see sentiment aggravated, and merchants' offers steadily declined slightly. Market transactions were generally weak, and downstream users were not motivated to purchase. However, there are relatively few market inventory resources, and new resources are limited in the short term, which has certain support for prices. In addition, today's billet market price fell 40 yuan / ton, the current carbon billet price is 3550 yuan / ton. On the whole, it is expected that the price of the plate market will be weaker tomorrow.

Cold rolling: Today's national cold rolling prices have been lowered slightly. Price: 1.0 national cold rolling average price of 4,636 yuan / ton, compared with the previous working day price fell 8 yuan / ton. The main market price: Shanghai market 1.0mm WISCO coil plate offer 4560 yuan / ton, Guangzhou market 1.0mm anang steel coil offer 4620 yuan / ton, Tianjin market 1.0mm anang steel coil offer 4440 yuan / ton. On the market side: due to the impact of futures decline, spot prices followed, but some of the high-profile transactions were difficult, demand was weak, and traders generally traded in general. On the whole, the possibility of a short-term price shock is too large.

Profile: Today's domestic steel market price is weak, and the average price of Gongjiao trough is about 10 yuan/ton. The overall price of H-beam is temporarily stable. Specifically, the Tangshan market continued to remain weak, with an overall decline of 10-30 yuan/ton in early trading. The intraday work tank continued to be lowered by 20-30 yuan/ton. The overall transaction was generally weak, and only some low-cost resources of channel steel could be sold. In recent days, the market price of steel has been declining, and there has been no significant improvement in market transactions. In addition, the inventory of steel mills is still on the rise, and individual merchants are still not optimistic about the market outlook. The quotation in East China market is mainly wait-and-see, but with the fall of futures and billet, the spot price has begun to loosen. In addition, the Rizhao Steel mill lowered the ex-factory price in the afternoon to stimulate the acceleration of some urban resources, and the mentality of merchants' cash-out increases. Huanange continued to be weak and stable. Due to the weather, the shipment situation in the past two days was not ideal. However, considering the higher price of steel mills and the low market inventories, the merchants’ willingness to fall in price was low, and only a small increase in shipments. On the whole, with the correction of electronic disk and billet to the market mentality, it has a certain impact on the market, while the shortage of specifications and low inventory is still firm. Therefore, the domestic steel market price is expected to remain firm and weak tomorrow.

Steel pipes: Today's domestic steel prices are generally stable, with individual cities down slightly. According to the variety: the average price of welded pipe 4 inch * 3.75mm is 4421 yuan / ton, which is flat compared with the previous trading day; the average price of galvanized pipe 4 inch * 3.75mm is 5271 yuan / ton, down 1 yuan from the previous trading day. / ton; seamless pipe Ф 108 * 4.5mm national average price of 5259 yuan / ton, compared with the previous trading day. In terms of pipe factory, Tianjin Youfa and Juncheng ex-factory prices were lowered by RMB 20/ton, Tianjin Lida was lowered by RMB 40/ton, and Linyi mainstream seamless pipe factory was offered by hot-rolling price of RMB 4,750-4,850/ton. In terms of welded pipes and galvanized pipes, the market transactions are general, and traders are more likely to replenish the warehouses as needed. In terms of seamless pipes, there is insufficient demand follow-up, market transactions are poor, and the pipe factory is supported by the cost end. It is expected that the market price of steel pipe will be adjusted and operated in the future.

Futures: Today's domestic black commodity futures closed down across the board, and the funds increased significantly, and the volume of transactions was heavy. Specifically, today's finished products market continues to weaken, the spot market demand is weak, the transaction shrinks for two consecutive days, the decline of the period snails makes the spot dealers continue to cut the offer, the overall black system forms a resonance down, after the market weakens, there is still a short-term Inertia falls into space, but in the later period, with the support of cost and inventory on prices or gradually strengthening, there is still room for growth in the future market. From the perspective of the Snail Day K, today's thread receives the Yinxian line, the daily line forms 5 consecutive yin, and the price falls below the 60-day line. The short-term is still in the callback. In general, there is still room for the future thread, and the above suggestions are recommended. Do more on dips and pay attention to positions.


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