On November 22, the domestic steel market prices went up and down, with Tangshan Pu’s billet falling 30 yuan to 4220 yuan/ton. As the futures market rises first and then declines, the price increase in the spot market has narrowed.
On the 22nd, most of the black futures varieties rose, and the main iron ore contract soared by more than 6%. The main force of the snails closed at 4300, up 2.28% from the previous trading day. DIF and DEA crossed upwards. The RSI three-line indicator is at 40-48, running between the lower and middle tracks of the Bollinger Bands.
Construction Steel: On November 22, the average price of 20mm Class III seismic rebar in 31 major cities across the country was 4754 yuan/ton, an increase of 38 yuan/ton from the previous trading day. Specifically, driven by the rise in futures and the rise in the spot market over the weekend, the domestic construction steel prices fluctuated strongly in the morning. From the perspective of transactions, snails fluctuated at a high level in the late afternoon, and the spot market in some areas fell slightly. The performance of low transactions was acceptable, and the high transactions were average. It is expected that the price of domestic construction steel will slow down on the 23rd.
Hot-rolled coil: On November 22, the average price of 4.75mm hot-rolled coil in 24 major cities across the country was 4,761 yuan/ton, an increase of 32 yuan/ton from the previous trading day. From the perspective of supply, the heating season is limited in many places, and the steel companies in Handan and Tangshan regions have imposed stricter production restrictions. In addition, companies are not motivated to produce at a loss, and the willingness to limit production and stabilize prices has increased. Steel production will remain low. In terms of demand, despite news of real estate and loan easing in the domestic market, there is still a lack of substantive policy benefits, and there is insufficient motivation to continue marginal improvement. It is expected that short-term hot-rolled coil prices may rebound slightly, but there is still room for long-term downward pressure.
Cold rolled coil: On November 22, the average price of 1.0mm cold coil in 24 major cities across the country was 5528 yuan/ton, down 14 yuan/ton from the previous trading day. The cold-rolled spot market was raised in some areas in the morning, and the spot market was weakly supported in the afternoon as the disk surface fell, and the price fell. In terms of transactions, transactions in markets such as Shanghai, Tianjin, and Guangzhou are still weak. The high-priced resources in the previous period have basically been sold out. The pressure of new orders is still acceptable. Most of them are still operating at low prices, and sentiment remains pessimistic. It is expected that on the 23rd, domestic cold-rolled spot prices will fluctuate in a narrow range and will be adjusted downwards.
Post time: Nov-23-2021