Steel Raw Material Price Report

On September 8, China’s leading steel varieties were mixed. Among them, the average price of hot rolled coil was 3954 RMB/ton, down 41 yuan/ton week on week; The average price of medium and thick plate closed at 4053 RMB/ton, down 17 RMB/ton week on week. The average price of H-shaped steel closed at 3590 RMB/ton, down 40 RMB/ton week on week. This week, in addition to the apparent consumption of hot-rolled steel coil, the consumption level of the remaining varieties has improved. The main reason is that the current supply level has not increased or decreased, and the superimposed inventory has continued to go away, which has promoted the weekly consumption improvement. In the short term, the current negative factors have no apparent impact on the market environment, and the recent improvement in demand and the improvement of market consumption power can support market sentiment and trading atmosphere, and then promote the stable and robust operation of prices.

Type	Specification	August 29, 2024	August 22, 2024	Changing Value
Rebar	HRB400E: φ28-32	3500	3480	+20
Carbon plate	Q235B: 8mm	3700	3720	-20
Galvanized tube	Q195-215: 0.5in*2.75mm	4810	4830	-20
CRC	SPCC: 0.5*1250mm	3910	3870	+40
HR sheet/coil	Q235B: 1.3*1250mm	4240	4200	+20
Low-alloy sheet	Q335B 4.5*1500mm	3320	3300	+20
H-beam	Q235B: 200*100	3460	3540	-80
Galvanized steel	DX51D+Z: 0.7mm	4760	4880	-120
Color-coated steel	TDC51D+Z: 0.35mm	6150	6150	0

Note: As of September 8, 2023, the real-time price and weekly price of each raw material are shown in the table above (Unit: RMB)

Steel Raw Material Price Report

1. Structural steel

The national steel prices narrow fluctuations, and some varieties of prices had a slightly stronger operation, Entering September, steel supply, especially H-type steel varieties continued to decrease, the market arrival of resources significantly reduced, social warehouse to warehouse sped up, for the price had a certain support. Next week, the supply of steel enterprises maintained a low level, as the storage pressure was not large, but the price decline led to the replenishment of cautious operation, The price difference between the north and the south also led to the weakening of resource liquidity, as a whole, the national average price of the national mainstream city Angle slot rose and fell within 10 RMB/ton last week, the national average price of H-type steel rose about 10 RMB/ton last week.

On the supply side, the production of Angle slots and H-shaped steel is expected to remain at a low supply level, and the hot metal will shift to the varieties with better profits. In terms of inventory, the current steel resources are less, the price is expected to fall, traders replenishment resources are mainly short-distance, so there are fewer resources in the way, and the pressure on the social library is not large next week, and the sales pressure mainly comes from the higher inventory cost. From the perspective of the price difference between the North and the South, the North rose significantly faster, the South due to the slow demand release speed slow price rise, the North and South price gap narrowed, regional liquidity weakened, and the North and south price gap expanded next week. In terms of mentality, from the current point of view, most steel traders are still not very clear about the market in September, and the news occasionally boosts market confidence, but the overall steel procurement rhythm has slowed down significantly, the price has risen weak, and the future market is expected to be short. On the whole, it is expected that the national steel market price will fluctuate and run weakly next week.

2. Hot-rolled Steel

Hot-rolled steel coil prices in China rose slightly. The average price of 3.0mm hot-rolled steel coil in the main market is 4059 RMB/ton, up 24 RMB/ton from last week; The average price of 4.75mm hot-rolled steel coil was 3995 RMB/ton, up 24 RMB/ton from last week. From the inventory data of various regions, the largest decline is in the southwest region, down 20,700 tons from the previous week, and the largest increase is in the East China region, up 41,500 tons from the previous week.

The contradiction between supply and demand in the market is still increasing, the inventory is accumulating, the pressure on steel mills to receive orders is increasing, and the confidence is significantly inhibited. In terms of current consumption, it needs to be maintained, but there is no expectation of hoarding, and there is a big gap between the overall expectation and reality. The current hot rolling supply is difficult to decline, peak season consumption is tepid, and the overall balance is in an unbalanced state. For next week, fundamental contradictions will continue to accumulate, for the price will still play a more obvious pressure.

3. Welded Pipe

The price of welded pipe in the country is mainly adjusted in a narrow range, the price of raw material strip steel fluctuates down, the profit of the pipe factory has been repaired to a certain extent, and traders are not willing to adjust in order to reduce losses. The pipe factory is still in the red, traders are still cautious about replenishing the inventory, the inventory in the factory is slightly tired this week, and the overall production pressure is still there. Some areas are affected by typhoon weather, downstream shutdown, market shipments have stalled, and the overall demand is slow to release.