Is the steel market depressed?

In the 48th week of 2019 (2019.11.25-11.29), the Lange Steel National Steel Composite Price Index reached 150.6 points, an increase of 0.25% over the previous week and an increase of 2.64% over the same period last year. Among them, the price index of LGMI long products was 167.4 points, a decrease of 0.24% from last week, and an increase of 4.37% from the same period last year; the price index of LGMI profiles was 152.6 points, an increase of 0.02% from last week, and a decrease of 0.54% from the same period last year; The index was 135.4 points, an increase of 0.77% from last week and an increase of 2.24% from the same period last year; the LGMI pipe price index was 156.6 points, an increase of 0.27% from last week, and a decrease of 1.00% from the same period last year.
According to the monitoring data of Lange Steel’s cloud business platform, the price changes of 43 categories (species) in 17 categories of steel raw fuels and steel products in some regions of China in the 48th week of 2019 are as follows: The market prices of major steel products have fluctuated, Compared with the week, the number of rising varieties decreased, the number of flat varieties increased slightly, and the number of falling varieties increased. Among them, 25 varieties rose, down by 7 from last week; 10 varieties were flat, increased by 1 from last week; 8 varieties fell, increased by 6 from last week. The domestic steel raw material market rose slightly, iron ore prices rose 5 yuan, coke prices rose 50 yuan, scrap prices rose 20-50 yuan, and billet prices rose 10-20 yuan.
At present, the tide of rushing work continues in various places, but the procurement intensity has begun to weaken, the market fears that the mood is high, and steel prices have fallen. However, due to the “warm winter” weather, steel mills have frequently restricted their environmental protection and their steel output has been suppressed. Recently, the “Notice on Strengthening the Capital Management of Fixed Asset Investment Projects” has been issued, proposing a series of policies and measures on appropriately reducing the proportion of project capital and strengthening the capital management of investment projects. The Ministry of Finance also issued some 1 trillion yuan of special debt limit in advance in 2020, these policies have strengthened market confidence. However, the winter steel market will still face increasing supply pressure, and high-level risks still exist. Taken together, the steel market will continue to fluctuate next week.
According to Lange Steel’s cloud price platform weekly price prediction model data calculation, next week (2019.12.2-12.6), the domestic steel market price will fluctuate and rise, the long product market price will rise slightly, the profile market price will rise slightly, and the plate market price will fluctuate. Rising, pipe market prices will fluctuate and decline. Lange Steel’s national steel price index is expected to fluctuate around 151.0 points, the average price of steel is around 4,150 yuan, with an average fluctuation of 10-60 yuan; of which, the long product price index is expected to fluctuate around 167.7 points, up 0.3 points; profile prices The index is expected to fluctuate around 152.9 points, up 0.3 points; the plate price index is expected to fluctuate around 136.1 points, up 0.7 points; the pipe price index is expected to fluctuate around 156.2 points, down 0.4 points.


Post time: Nov-30-2019
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