A summary of the spot situation of the steel market on June 9

The charge iron ore, scrap steel stalemate

Iron ore prices have remained weak this week, and port stocks have continued to grow. The pressure to “go stocks” remains severe. Judging from the comparison of the spot price difference over the past weekend, both of them are facing upside down seriously, coupled with the smooth transition of the contracted ore prices in the third quarter, so the steel mills are more likely to favor the stock market this month, resulting in a slight increase in the price of the external disk over the weekend. Now 63.5% Indian powder ore 178-179 US dollars / ton, compared with the last weekend rose about 2 US dollars / ton. Domestic ore prices are still weak and stable, and the phenomenon of low-price cargoes in some regions also exists. Now that businesses have a strong wait-and-see atmosphere, the attitude of bargaining is more urgent. Taken together, the price of iron powder is expected to stabilize after the steel plants have digested their inventories. However, the transaction situation is unlikely to change significantly in the short term.

This week, the prices of the domestic scrap steel market have risen and fell, and the prices of raw materials have risen tentatively at the beginning of the week, bringing a certain boost to the local scrap steel market. In some regions, the price of high-quality scrap steel rose slightly, but the impact on the overall market was limited. Other leading steel mills have no plans to follow up. Due to the high price of local small furnaces and the large amount of merchants' delivery, it has made it difficult for other major steel mills to purchase. Over the weekend, as billet prices fell and the arrival of the busy season, some steel mills started to reduce production. Considering that the current price is already at a high level and the price increase space is limited, the increase in the ceiling price is expected to increase. It is expected that the short-term market price will remain stable at a high level.

Steel stocks tend to stabilize

**Vibration decreases Today's construction steel market tends to ease up, leading the market to stabilize. At present, the overall inventory structure of the market is unbalanced, the supply of tight resources is slow, and market inventories are low. However, demand has weakened with the arrival of the off-season, prices have been weak, and the decline has been limited. Today Baosteel’s downward adjustment in July’s policy and continuous divergence in the intraday session have a certain impact on market confidence. In addition, the economic risks in Europe and the United States continue to fluctuate. Domestic inflationary pressures are on the decline. The rate hike is still expected to remain high. The market continues to worry and the current wait-and-see atmosphere is still strong. The late expectations are somewhat confused. Taken together, it is expected that the market price will continue to consolidate in the short term, and there may be some corrections in the medium to long term. The market opened this morning, Tangshan 145 fell again, the market is poor, the market more wait and see; recently the construction industry Tangshan 145 fell slightly, the market shipments still no improvement, the market more wait and see, with the construction of weak steel, scaffolding again this fall 20; 145 Influenced by this pressure, shipments were hindered; 232-355 was still operating steadily, and there was a shortage of certain specifications in the market, and the market price was relatively stable; this morning, the market opened with a large number of hot coils and snails. Look blank. Most of the upstream raw materials have been mainly stable in recent days, and the billet has finally recovered slightly by 10 yesterday. However, due to the small amount of local inventory, there is limited space for late-stage price fall. The short-term mainstream of 355 strip steel is stable.

Special Steel has not changed in the short term

This week, the structural steel market in East China was mainly operating with a stable trend, and transactions continued to be tepid. Before the Dragon Boat Festival, the turnover was relatively flat. Traders' quotes after the holiday season were still cautious, and there was not much change before the holiday. The market is now more subtle. Some resources that are relatively lack of specifications continue to be in short supply. The main roads are still difficult to ship, and the gap is obvious. If Huaigang Φ100mm above 45 #, 40Cr market resources are relatively scarce, traders offer relatively high traders have always been a bearish attitude, but steel prices, purchase costs, inventory, price support is still more obvious. The recent thread spot price is stable, there is a certain amount of shipments, and inventory is gradually decreasing, which has played a certain role in supporting structural steel market confidence. From the market point of view, 45 # carbon steel Nanjing: Nanjing Steel 5180 yuan / ton; Wuxi: Huaigang 5270 yuan / ton; Changzhou: Huaigang 5250 yuan / ton, Nangang 5230 yuan / ton. 40Cr bonded steel: Nanjing: Nanjing Steel 5350 yuan / ton; Wuxi: Huaigang Steel 5480 yuan / ton; Changzhou: Huaigang Steel in 5530 yuan / ton. Gear steel: Nanjing: Nanjing Steel 5,800 yuan/ton; Wuxi: Shougang 5,750 yuan/ton; Changzhou: Nangang 5,750 yuan/ton.

From the perspective of the domestic stainless steel market, the recent domestic market has shown strong resilience. On the one hand, after the price has fallen sharply, it has touched the trader's operating cost line, making the price gain strong support; on the other hand, it is also due to the recent domestic portion. The decrease in steel mill production has reduced supply to the market and supported spot prices. Judging from the recent market demand, the current domestic downstream demand is still weak, and under the influence of electricity shortage in the southeastern region, the production capacity of some downstream companies is further inhibited, and the demand for metals is unlikely to rebound in the short term, so the fundamental demand is weak. The status quo will continue.