The market price of cold rolled coils will stabilize in the later period

Recently, the market for hot and cold coiled coils has improved slightly, prices have oscillated upwards, traders are in a fair condition, and sales have increased. From April 8 to April 12, the price of hot-rolled coils rebounded significantly.

On April 8th, in the Shanghai market, the merchants raised HRC prices twice in one day, with an increase of RMB 20/ton to RMB 50/ton. In the following days, this upward trend continued. As of April 12, the average price of 5.5mm HRC in the major domestic market was 3,880 yuan/ton, which was RMB 18/ton higher than before the Ching Ming Festival (April 3). . Cold rolled coil prices are relatively stable. As of April 12, the average price of 1.0mm cold-rolled coils in major domestic markets was 4,810 yuan/ton, a slight increase of 5 yuan/ton before the Ching Ming Festival (April 3).

According to the plate trader of the Shanghai market, this week, the volume of hot and cold rolled coils purchased by manufacturers of home appliances and auto parts increased, and the market transactions have improved. The sales volume of merchants has increased over the previous period. Some large steel traders can sell 2,000 tons of hot-rolled coils a day, and ordinary steel traders have 500 tons to 600 tons of sales.

For the later trend, some operators believe that the market price of cold-rolled coils will stabilize in the later period. Judging from the current situation in the market, price inversion is still the biggest problem in the hot and cold coil market. According to the operators, the market price of cold-rolled coils is still very serious. The resources that they sold are all imported in February and March of this year. At that time, the order prices were generally 5,000 yuan/ton to 5,050 yuan/ton. At present, the sales price of the Shanghai market is only 4,750 yuan / ton ~ 4,800 yuan / ton, to sell a ton to lose about 200 yuan, is close to the bottom line of business psychology.

In this case, many steel mills adjusted their price policies. Some steel mills lowered their factory prices, and some increased their order preference for steel traders to attract orders from steel traders. For example, Baosteel's ex-factory price for flat steel in May was flattened, with 5.5mm hot-rolled coil subsidy of 100 yuan/ton, and 1.0mm cold-rolled sheet subsidy of 200 yuan/ton. Some steel mills issued a settlement price “New Deal”. For example, 60% of orders for steel traders in March were executed at March prices, and the remaining 40% were executed at April prices. This will ease the cost pressures of trading companies.

However, the operators are not blindly optimistic about the market conditions for the cold-rolled coils in the later period. This is because the current situation of high output and high social inventory of steel mills has still not been significantly improved, which will curb rising prices. According to the latest statistics from the Steel Association, in the end of March, the average daily output of crude steel of the steel association members was 1,675,800 tons, up by 0.49% from the previous month; the average daily output of crude steel was estimated to reach 2,071,900 tons, and it was 0.40% higher than last year. . In addition, inventory, hot-rolled coil market inventory has remained high, as of April 12, the total volume of social stock of hot-rolled coils reached 4.5214 million tons, this year, the inventory of this species has been growing, inventory pressure is particularly obvious . At the same time, the manufacturers faced an increasingly large contracting contract. Under such circumstances, the prices of cold and hot coiled coils do not have the conditions for a sharp rebound. It is expected that stability will be the main factor in the later period.