Domestic Steel Price Changed from Rising to Falling Iron Ore Market Rising Steadily

Domestic spot steel prices from rising to falling, transaction contraction, the market "bearish" sentiment has increased. The iron ore market is rising steadily, and the stock level of imported ore at ports is fluctuating from time to time.



In the last week, the domestic spot steel price composite index closed at 141.48 points, down 1.39% in a week. Specifically, due to the impact of the lower volatility of the relevant futures market, the spot steel market opened a downward trend, the market bearish sentiment intensified, and the volume contracted. Considering the weakening demand in the later period and the tightening of funds at the end of the year, businessmen mainly take active delivery in market operation.



According to the analysis, in the construction steel market, the price drop is more obvious. The average price of the main specification screw steel varieties in the main market of China is 3977 yuan per ton, down 73 yuan per week. According to the latest inventory data, the social stock keeps accumulating, and the stock of steel mills has changed from falling to rising, which indicates that the market demand is not up to the expected level.



In the plate market, prices generally fell. Hot-rolled coil prices fell slightly. The average market price of hot-rolled products of mainstream specifications in major markets in China was 3767 yuan per ton, 49 yuan per week. Medium and heavy plate prices fell slightly. The average price of the mainstream standard medium plate in the main market of China was 3847 yuan per ton, down 23 yuan per week. At present, there is a slight shortage of some specifications products in the market, which partly supports the price. However, weak demand and other uncertainties still determine the weak characteristics of the steel market.



The iron ore market is steadily rising. According to the latest report of "Xiben Shinkansen Line", the domestic iron concentrate market rose steadily in December, the supply of iron concentrate is at a low level, and ore traders are reluctant to sell. The price of imported iron ore rose in December. As of December 27, the price of 62% grade imported iron ore was $72.40 per ton, up by $6.95 per month. Overall, in the first half of December, the arrival volume of imported ore maintained a low level, and the ore stocks in the port continued to decline; in the second half, the arrival volume of imported ore increased slightly, and the ore stocks in the port increased again.



Relevant institutions believe that the domestic steel market as a whole is in the stage of weak consolidation. On the one hand, the terminal demand is shrinking day by day and the steel price is rising without motivation; on the other hand, steel enterprises are actively promoting prices, and social inventory is at a relatively low level, which has certain support for steel prices.