The price of raw materials has risen, and the regional profit gap has narrowed
Market transactions
Yesterday’s overall market transactions were acceptable. Among them, the national transaction volume was 214,900 tons, and the transaction volume of large households in the East China sample area was 79,800 tons. The price has continued to rise recently. The superimposed weather conditions have created good construction conditions. Speculative demand has been released. However, manufacturers have strong willingness to stand up for the price.
National inventory
The latest set of inventory data was released today. The number of threaded warehouses in 35 cities was 4,427,700 tons decreased by 308,800 tons, the wire rod warehouses decreased by 59,500 tons from 1.309 million tons, the total inventory of community warehouses was 5.7286 million tons, and the rebar factory warehouses decreased by 15.09 tons of 2,649,700 tons. 10,000 tons, the wire rod factory warehouse was 900,400 tons, a decrease of 26,800 tons, the steel mill’s total inventory was 3.5501 million tons; the weekly production of rebar was 2,721,700 tons, an increase of 16,700 tons. Apparent demand increased, some steel mills resumed production, steel mill output increased slightly, social warehouses, factories and warehouses both decreased, and the overall market inventory decline expanded.
Raw materials
1, coke
The domestic coke market has declined as a whole, and the seventh round of reduction has been fully implemented. Judging from the current situation, the inventory in coke companies is still accumulating. After seven consecutive rounds of decline in coke prices, the demand of some steel mills has rebounded slightly, driving the mentality of some coke companies to slightly improve. At the low level, some steel mills still have bearish expectations.
2, scrap steel
The current price increase of raw material futures is mainly based on the logic that the market expects steel mills to resume production around December. Therefore, the recent growth of coke and iron ore futures can be much greater than that of finished material futures. As for scrap steel, it naturally enjoys the benefits of rising other raw material futures. Superimposed Recently, the arrival of scrap steel from steel mills has dropped significantly, and the steel mills are unable to receive the goods, which has boosted this wave of gains. It is appropriate to usher in a slight rebound after the scrap price oversold. However, the increase will continue to be limited. After all, it is difficult for iron ore and coke to rise. At this time, the cost of molten iron will not rise too much, and the scrap cannot be much higher than the molten iron. Otherwise, steel mills will consider using scrap steel. Cost-effective, so the rising height of scrap steel is limited.
Profit margins
The raw materials have been revised up recently, and the spot end of finished products has continued to strengthen. Among them, the Fujian region has seen a large increase in this round due to the low prices in the previous period. The price in South China has remained strong. The recent increase in finished products has not been large, and the profit margin has narrowed.
Later market prediction
As far as the market outlook is concerned, the editor’s personal opinion is as follows: At present, many regions, especially the north, are cooling in a large scale, the demand is weakening, and the spot market sentiment is slack. Moderate, and steel companies’ blast furnace starts are at a high level, output still has room for growth, but downstream demand still exists, but after the previous rise, the market needs to digest, there is still room for growth after short-term adjustments, but the room for growth and the length of time will eventually return Actual market demand.