With the normalization of high temperature and rainy weather, the release of end users' demand has slowed down obviously. But under the stimulus of environmental factors, the steel market of construction steel appeared last week after last week (June 4th ~10 day). The overall price of domestic mainstream market rose 20 yuan / ton ~70 yuan / ton compared with the previous week.

 

 

Related people think, the construction steel market in the low season has a small rebound in the market, on the one hand because of the strong trend of the steel futures market last week, in the favorable effect of the futures market, the spot market steel prices have been rising, pushing the price of the whole building steel market to rebound steadily; on the other hand, because of the near future. Domestic steel plant repair began to increase, the supply of market resources tightened, part of the product specifications even appeared supply shortage situation, merchants reluctant to sell the price situation began to increase, in the specific operation more options follow the rise. Considering that the whole market is still a situation of multi - space interlacing game, it is difficult to get out of the single side rebound in the construction steel market in the short term, and more will continue to adjust the market.

 

The reasons for the above prediction are:

 

First, the price of raw materials is rising, and the cost platform for building steel is stable. Last week, the domestic coke market price opened the seventh round of price rise since the beginning of this year. Among them, Hebei, Shandong, Shanxi and other market prices rose 100 yuan per ton, the cumulative increase has reached 550 yuan / ton; domestic imports of iron ore prices rose, the price of scrap steel rose slightly. The continuous rise of raw material prices will undoubtedly increase the production cost of steel enterprises, which to a certain extent has restrained the space for building steel prices to adjust downward.

 

Second, the repair of steel mills has increased, the volume of steel shipments has decreased, and market supply has tightened. According to the author's understanding, in June, the repair of steel mills gradually increased, which directly led to an increase in the supply gap of construction steel market resources. According to the data, as of this Monday (June 11th), the national key steel enterprise construction steel construction rate was 86.6%, the ring ratio dropped 0.96%, the screw steel construction rate was 84.58%, and the ring ratio decreased by 0.99%. The continuous decline of operating rate has led to insufficient supply of market resources, especially the shortage of supply of resources of coil and wire materials, and the shortage of market resources. What is more noteworthy is that the impact of recent environmental inspectors' "looking back" on the normal production rhythm of steel mills can not be ignored.

 

Third, the demand "power" is insufficient, and the price rebounding is limited. At present, the factor that restraining the rebound of construction steel prices is still the demand of end-users. On the one hand, with the dense appearance of high temperature and rainy weather, the construction of terminal engineering has been obviously affected, the progress of the project is slow and the demand for building steel has some influence. On the other hand, the acceptance of high price for the construction steel is not high, and more attention is taken to the construction steel. In the later stage, if demand continues to be weak, it is hard for the construction steel market to have a high price without market. In addition, in the first 4 months of this year, investment in infrastructure construction (excluding electricity, heat, gas and water production and supply) increased by 12.4% from the same period, and the growth rate fell by 0.6 percentage points over the first 3 months. Infrastructure construction investment growth continued to slow down, indicating that infrastructure construction in the late period of construction demand for steel significantly slowed down. In order to break through the market in the short term, we must find new demand highlights.

 

Fourthly, the price of steel mills is moderate and the market is difficult to improve. Take Fujian Sansteel as an example, in June 6th, the third steel introduced the factory price policy of construction steel, and all varieties prices were not adjusted. The moderate pricing of steel plants will play a positive role in stabilizing the price of construction steel market.