Domestic steel price weakening, ore price shock adjustment

Although the low mood of the steel market has eased, the domestic spot steel price has weakened in the past week. The iron ore market is in the process of shock adjustment, and the demand of steel mills for ore has been reduced.

According to the latest market report provided by the domestic steel information agency "my steel", the composite index of domestic spot steel prices closed at 140.69 points last week, down 0.49% for the week. Among them, the price of construction steel fell, and the average price of rebar varieties with mainstream specifications in the main market nationwide was 3839 yuan per ton, down 25 yuan a week. The price of hot-rolled coil has stabilized, and the average market price of hot-rolled products of mainstream specifications in the main national markets is 3793 yuan per ton, up 9 yuan a week. The price of medium and heavy plate fell. The average price of common and medium plate, the mainstream specification in the main market of China, was 3892 yuan per ton, down 20 yuan a week.

At present, although the transaction of high price is weak, the transaction of relatively low price is still acceptable. Recently, both steel output and steel inventory data have fallen to a certain extent, but the market demand is still slightly sluggish, and the price is pulling up cautiously.

The iron ore market is in shock adjustment. According to the latest report of "Xiben Shinkansen", in the domestic ore market, the price has dropped slightly, and the acceptance of high price ore by steel enterprises is not high. The port inventory of imported ores has decreased. After a round of obvious decline in ore prices, market sentiment has eased, but the demand for imported ores has also declined after the steel mills have strengthened their efforts to limit production.

According to the analysis of relevant institutions, the terminal demand of the steel market has not yet fully recovered, the de stocking speed is also lower than expected, and the steel price entering the rising channel still lacks sufficient power, and it is expected that the market will walk out of the trend of strong shock in the short term.