Raw material iron ore prices continue to rise, Steel Future Prices commomly go up
On June 19th, the price of steel futures commonly rose. The main contracts of hot coil futures, rebar futures and wire futures closed at 3653 yuan/ton, 3770 yuan/ton, and 4151 yuan/ton, respectively, with an increase of 2.12% , 1 .62% and 0.02%.
Zhu Shanshan, an analyst at Jinlian Steel, said that the shutdown of some downstream rolling mills has increased recently, and the demand for steel billets has weakened. In addition, the overall phenomenon of steel slabs and finished products has been accumulated, the downstream demand performance has been weak. Moreover, some steel companies have already lost money, and there is resistance to rising mineral prices. However, the domestic iron ore market has continued to strengthen recently. Due to the limited amount of imported ore to the port, iron ore stocks have declined for the tenth consecutive week; and most steel companies' iron ore stocks are generally low, and there is still a large demand for iron ore. Generally, the current raw material price trend is strong, and the support for steel spot prices is still good.
The data shows that till the close of June 19, in terms of A-shares related to rolled plates, Fangda Special Steel and Daye Special Steel were among the top gainers; in terms of A-shares related to steel rebar, Linggang, Liuzhou Iron and Steel Co., Chongqing Iron and Steel and New Steel Co., Ltd. have a large increase; in terms of A-shares related to steel wires, Shunfeng Holdings, Honglu Steel Structure, Hongyu New Materials and Oriental Tower have increased significantly.
Shanghai All-Win Iron & Steel Company now has thousands tons of steel plates, steel profiles, steel pipes, steel bars, steel wires in stock. So it can arrange the cheaper price than steel future prices and deliver the goods within 5-7 days.