March Consumption Season

- Jan 17, 2019-

This week into the March consumption season, but the actual demand than the last month did not have a significant release, the early Zhou was affected by Beijing's "two sessions" and heating season production restrictions task, the North Steel Plant environmental protection production restrictions scope has been expanded, 65Mn steel plate spot price by this support performance is strong, but downstream more hold a single wait and see, In the middle of the week began the high resource pressure reduction. For next week, steel plant maintenance continues to curb market supply, and with the southern weather improved, demand has a better release expectations, and from the inventory data, this week, the library has slipped, supply and demand contradictions or further relief, in view of environmental protection, although the market mentality is cautious, but more unwilling to reduce prices, low resources have a strong bottom support, Therefore, the middle plate price shock is expected to stabilize next week.

This week, the national hot rolling market slightly concussion, regional concussion is not small, the range of 10-40 yuan/ton. Among them, east China, South China, and the Northeast oscillation downward, the decline in 10-40 yuan/ton, north China showed a steady upward trend, the range of 10-20 yuan/ton; The following specific: The opening of the early Zhou, the National hot rolling market is mainly high, the range of 10-80 yuan/ton. Related period volume holding red operation, and weekend billet concussion rise, spot market mentality optimistic, traders to increase the shipment operation, low resources transaction is OK, high resources transaction is still weak; by the middle of the week, the national hot rolling market weakened, adjusted to 10-30 yuan/ton, the associated period of the roll green, superimposed downstream demand is poor, Market mentality to wait and see, most merchants concession shipments to facilitate the delivery, downstream users more careful to buy, a large number of stock will not be high, to the weekend, the National 65Mn steel plate market stable weak, adjust the range of 10-50 yuan/ton, the associated period of continuous weakness, and downstream entry into the market carefully watching, the spot market mentality frustrated, merchants loose , After the market, the two sessions of the national Environmental protection production restrictions, steel plant production is limited, in the short term, the supply pressure is not small, the current market transaction is flat, but generally the expectations of the release of demand is more strong, so take more wait and see shipment, South China market narrow, Liugang mainstream in 4350-4400 yuan, E-commerce in 4340-4380 yuan, high and low position is obvious, Angang is more than 4400, box board height to 4700 yuan, it is understood that Angang February cold settlement price to the wharf cost in 4450 yuan/ton, warehousing costs to 4500 yuan/ton, traders ordering cost pressure is very large, do not want to profit from sales. Another part of the home appliance Enterprises said that the current procurement volume has a rising space. Taken together, the market price of cold rolling is expected to rise easily next week. To sum up, in the market supply and demand two weak market, is expected next week 65Mn steel plate market or narrow shock.