When the off-season comes, the steel market will be stable in the new year.
recently, some well-known steel trading institutions released market reports that due to the changes in supply and demand and the promotion of steel production costs, the steel market entering 2011 may be transparent and some conductive materials will remain relatively stable
in terms of demand, as it is close to the end of the year, the demand for domestic construction steel, hot coil and other products has shown a downward trend. Monitoring shows that in the Shanghai market, construction site procurement in the construction steel market has gradually weakened, dealers have also turned to a collective wait-and-see state, and the "off-season demand" has quietly arrived. The rise and fall space of the ton price of construction steel in Shanghai in December was less than 50 yuan
in the domestic hot-rolled coil market, at present, the export growth of relevant inventory water in various markets is stable, but still remains at a high level. The hot coil inventory in Shanghai market is estimated to be as high as 2.7 million tons. Some businesses predict that this inventory level may be close to or exceed the 10-year high after the Spring Festival
at present, the only thing that maintains high demand is that the inventory of cold-rolled coil market related to the automotive industry has not increased significantly, and local resource gaps still exist. However, the cancellation of the preferential policy of vehicle purchase tax from January 1, 2011 may affect its demand
at the same time, from the perspective of supply, due to the completion of energy conservation and emission reduction tasks in some regions, the resumption of production of small and medium-sized steel mills began to increase, and the market supply increased. Statistics show that in November 2010, domestic crude steel production showed positive growth again after a year-on-year decline for three consecutive months. In November 2010, the average daily crude steel production increased by 3.1% month on month. In the first and middle of December, the national crude steel production reached 1.677 million tons per day, an increase of 4.50% over the same period last month
however, as the prices of raw materials such as iron ore, coke and steel billets, which are used to produce steel in combination with cosmetics packaging detection and utilization demand, are still strong, the industry expects that the possibility of a sharp decline in steel prices is also relatively small. At present, the quotation of 63.5% Indian fine ore is US $177-179 per ton. The industry estimates that the agreed import price of iron ore increased by about 7% in the first quarter of this year. When the coal prices of major coal mines were comprehensively raised in January, the prices of coke and billet will also show an upward trend, supporting the rise of steel costs
it is worth noting that in mid December 2010, Baosteel [6.38 -0.16%] (600019) has increased the ex factory price of steel in January 2011 by yuan/ton. In terms of hot rolling, the price of low carbon steel, ultra-low carbon steel and general cold forming steel is increased by 260 yuan/ton, and that of other varieties is increased by 100 yuan/ton; Pickling products are generally increased by 200 yuan/ton; In cold rolled products, CQ grade and non automotive steel are increased by 200 yuan/ton, and other products are increased by 300 yuan/ton; Stainless steel products and Meishan steel products are discounted by 100 yuan/ton and 200 yuan/ton respectively on the basis of the price of directly affiliated factories; Thick plate is generally increased by 150 yuan/ton. The industry believes that Baosteel's price increase has the consideration of covering the cost, which also shows that Baosteel has confidence in the market demand in 2011, and the amplitude fluctuation is not greater than 2% FS of each grade