The steel market trend on July 22-27th, 2019
Building steels: In this week, the price of building steels showed a trend of rising first and then falling. In the first half of the week, due to the increase of the future black steel series and the strong price of billet, the price of stock steels was relatively good, and the market transactions are improved. However, as the mid-week the future steel price had sharp drop and the price of billets went down also, so the transaction of the stock steels was blocked, and the market demand weakened again in the latter half of the week. On the demand side, it is currently in the off-season of steel consumption, and the overall demand in the downstream is limited. The current market is affected by the mentality of buying up and not buying down. The overall wait-and-see mood of the merchants is strong. On the whole, it is expected that the price of domestic construction steel will continue to fluctuate next week. Weak operation.
Steel Pipes: In this week, the price of the market is slightly adjusted, and the transaction is a little low. About the welded pipes and galvanized pipes, the northern market is mainly in the Jintang areas. The overall price of welded pipe is raised by RMB10-30 per ton, and and the galvanized pipe is raised by about RMB30 per ton. In the southern market, plum rain continues, roads are blocked, downstream steel demand is limited, merchants' willingness to purchase goods is not high, and the market's overall trading atmosphere is deserted. Therefore, it is expected that the market will be adjusted steadily next week.
Steel Profiles: In this week, the steel profiles' market is weak. The environmental protection policies in the surrounding areas of Tangshan, Hebei Province, have become stricter, and the raw materials have been weakened. The mills' purchases of steel have not improved significantly, and the market sentiment continues to be light. And the high-temperature and rainy weather high-incidence period also affect the outdoor project and overall delivery to a certain extent, while the steel demand did not pick up slightly, the steel agent is generally cautious. However the Tangshan government issued a document requesting that the independent rolling of the steel from 0:00 on July 26 to 24:00 on July 28 will be discontinued on the basis of the implementation of the July control measures. It is expected that the short-term local price will be stable and high.
Steel Strips: In this week, the steel strips are adjusted operation. Weak demand is the biggest obstacle to the rise, but now because of limitation of environmental protection, the mills are not willing to cut prices. After the end of the month, the rolling mills will resume production, the demand for billets will recover, and the cost will be high. However, the price increase is lack of strong support from downstream demand. Because of environmental protection, the weak demand become the main trend. Considering the good expectations for the later period, it is expected to maintain a high level of shock pattern next week.