The current situation of my country’s steel industry is bleak, and the continuous downward trend has burned out the last ray of hope for steel companies. Although many companies have been struggling to maintain it again and again, the demand in the steel industry has never shown signs of recovery. The bid to host the 2022 Beijing Winter Olympics in China has rekindled hope among steel mill owners. After New Year’s Day, domestic steel futures and spot prices rose synchronously, driven by the production restriction factor of the Winter Olympics.
During the Spring Festival, the mainstream steel mills all raised the ex-factory price in February. Shagang raised the price of rebar by 100 in early February, 100 of coiled screw, and 100 of common line. Shagang’s hot-rolled Q235 in February increased by 150, and the current 5.5*1500Q235 hot-rolled price is 5100. Shagang’s hot-rolled SPHC has been raised by 150, and the current 4.0*1250mm SPHC hot-rolled price is 5100. In addition, the lock price of Tangshan billet has ended, and today it has been raised by 100 yuan to 4,600 yuan / ton.
Although the demand in the market has not yet fully started, the intensive price increase of steel mills and the strong rise of black futures have all promoted the strengthening of steel prices. As the prices of most domestic commodity futures continue to rise after the holiday, we will pay attention to whether relevant departments implement the policy of “stabilizing prices and ensuring supply” for some commodities and destocking of steel products. The market supply and demand mentality may be cautiously optimistic. The rally may slow down.
Post time: Feb-11-2022