Imported mines: On November 22, the imported mines market went up slightly, the market sentiment was fair, and the overall transaction was fair. It is understood that some traders are optimistic about short-term market prices, and have a strong sentiment on prices. At the same time, traders have increased speculative demand for buying goods, and steel mills mainly purchase on demand. Stimulated by the news of improving steel mill profits and downstream resumption of work, the market expects higher steel mills to resume production and increased demand for iron ore. However, as current expectations have not fully become reality, shocks may be the main reason in the short term.
Coke: On November 22, the coke market was operating weakly, and the seventh round of a 200 yuan/ton drop started. On the supply side, due to environmental inspections and continuous rounds of price drops, the overall operating rate of coking plants is low, and there is a willingness to actively limit production. The supply continues to fall, but due to poor shipments, there is a phenomenon of inventory accumulation. In terms of demand, since November, steel prices have fallen by more than a thousand yuan, the steel market is sluggish, steel mills are facing losses, and steel mills in many places have issued maintenance messages to reduce production and control the pace of coke procurement. In terms of costs, due to the continued downward adjustment of various coal types in Shanxi, the immediate profit of the coking plant has gradually turned negative to positive. At present, both supply and demand in the coke market are weak, costs are falling, and the downstream steel market fluctuates at a low level. In the short term, the coke market is weak.
Scrap steel: On November 22, the scrap market price went strong, mainstream steel mill scrap prices remained stable, and mainstream market scrap prices adjusted upward. Scrap steel prices rose slightly due to the upward price of finished products, which shocked market confidence. However, the difference in iron scrap is still small, and the cost-effectiveness of scrap steel does not have obvious advantages. Considering that the price of coke has been increased for seven consecutive times, the cost of molten iron has been continuously compressed, and the decline of scrap is still obvious. The scrap steel market is expected to fluctuate within a narrow range in the short term.
Post time: Nov-23-2021