Steel Prices Weakly Fluctuate with the Mainstream Coke Enterprises' Price Increase, and the Spot and Futures Prices of Steel Fall Below 3600
Jun 21, 2024
Summary of Spot and Futures Steel Prices:
On June 20th, the domestic steel market in China showed a weak trend. Tangshan Qian'an's general square billet resources fell by 20 RMB, reporting 3360 RMB/tonne (inclusive of tax). The morning futures slightly dropped, with the domestic spot prices partially falling in the morning. In terms of transactions, the overall market performance was average in the morning, and the futures continued to weaken in the afternoon, with low-priced resources emerging and a cold trading atmosphere.
Steel Prices on June 20th:
| Product | Grade | Price (RMB/tonne) | Change |
|---|---|---|---|
| Reinforcing Bar | HRB400E 20mm | 3695 | ↓ 112 |
| Coiling | HRB400E 8mm | 3907 | ↓ 11 |
On June 20th, the main contract for futures showed a weak trend, closing at 3597, down 0.85%. The DIF and DEA continued to move downward, and the RSI indicators were between 30-44, operating between the middle and lower tracks of the Bollinger Bands.
Daily Price Quotes for Steel Raw Materials:
Iron Ore: On June 20th, the prices of mainstream imported iron ore varieties at Shandong ports were temporarily stable compared to the previous working day.
Scrap Steel: On June 20th, the average price of scrap steel in 45 major markets nationwide was 2406 RMB/tonne, down 2 RMB from the previous trading day.
Coke: On June 20th, the market price of coke was temporarily stable. The mainstream coke enterprises have issued letters to raise the price of coke by 50-55 RMB/tonne from June 21st, and the mainstream steel mills have not yet responded.
Steel Market Price Forecast:
On the supply side, according to Mysteel research, the output of the five major steel varieties this week was 8.9149 million tonnes, a decrease of 57,200 tonnes week-on-week. Inventory-wise, the total inventory of the five major steel varieties this week was 17.6158 million tonnes, a decrease of 52,200 tonnes week-on-week.
Under the high-temperature and rainy weather, the trading atmosphere in the steel market is dull. At the same time, most blast furnace steel mills are on the edge of profit and loss, and the steel output has slightly decreased this week, with the supply and demand generally in a weak balance. In addition, the cost still supports the steel price, and the manufacturers are not motivated to reduce prices and sell goods. In the short term, the steel price may continue to operate in a weak and narrow fluctuation.
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