Medium and Heavy Plate: Last Week’s Prices Showed Volatile Decline, Expected to Continue This Week
Last week, the national medium and heavy plate market prices exhibited a volatile downward trend with overall average transaction performance. The total national inventory for medium plates was 294.23 tons, an increase of 2.38 tons from the previous week, with the largest increase in the East China region. The operating rate was 81.54%, down 3.08% from the previous week. Steel mill weekly actual production was 1.526 million tons, down 23.3 thousand tons from the previous week. Steel mill capacity utilization was 93.84%, a decrease of 1.43% from the previous week. Steel mill inventory was 790.2 thousand tons, an increase of 6.8 thousand tons from the previous week.
Supply Side:
Production pace remained stable.
High production continued with ample market resource arrivals.
Slight inventory increase.
Demand Side:
Poor demand for steel used in construction structures.
Reduced demand for steel used in engineering machinery.
Persistent weak off-season effect.
Market Sentiment:
Low market confidence.
Traders focused on inventory reduction and cash flow.
Cautious downstream orders.
Short-term Outlook:
Domestic medium plate prices are expected to continue their volatile decline this week.
Hot Rolled Coil: Inventory Continues to Increase, Weak Demand
This week, domestic hot-rolled coil prices generally declined. The average price for 3.0mm hot-rolled coils across 24 major markets was 3755 yuan/ton, down 33 yuan/ton from the previous week. The average price for 4.75mm hot-rolled coils was 3692 yuan/ton, down 35 yuan/ton from the previous week.
Inventory Data:
East China region saw the largest decrease, down 14.9 thousand tons from the previous week.
South China region saw the largest increase, up 32 thousand tons from the previous week.
Market Inventory:
Overall inventory continues to increase, mainly in the South China region.
Other regions saw smaller increases.
Current Situation:
High supply and high inventory persist.
Prices continue to decline due to growing market contradictions.
Outlook:
With an important meeting approaching, market expectations remain low.
Prices are expected to continue fluctuating this week.
Section Steel: Overall Weak Trend Last Week, Expected to Remain Weak This Week
Last week, national section steel prices trended weaker overall:
200*200 H-beam: average price 3611 yuan/ton, down 34 yuan/ton from the previous week.
588*300 H-beam: 3741 yuan/ton, down 32 yuan/ton.
5# Angle steel: 3795 yuan/ton, down 59 yuan/ton.
16# Channel steel: 3808 yuan/ton, down 59 yuan/ton.
25# I-beam: 3878 yuan/ton, down 68 yuan/ton.
Supply Side:
National production of angle and channel steel: 299.5 thousand tons, down 21.7 thousand tons.
H-beam steel production: 304 thousand tons, up 23.6 thousand tons.
Steel mill losses narrowed.
Some mills resumed normal production, increasing operating rates and capacity utilization.
Demand Side:
Overall weak market demand.
Transactions mainly for low-priced, essential resources.
Cautious outlook among downstream merchants, only replenishing critical needs.
Overall Analysis:
Small profit recovery for steel mills.
Increased production compared to last week.
Some mills still reducing inventory.
Cautious sentiment among traders, focusing on existing inventory sales.
Poor downstream demand with no positive news to support price increases.
Short-term Outlook:
Domestic section steel prices are expected to remain weak this week.
The current landscape of the steel market within the machinery industry reflects ongoing supply-demand imbalances, cautious market sentiment, and weak downstream demand. Prices across various steel products, including medium and heavy plates, hot-rolled coils, and section steel, are expected to continue their volatile or weak trends in the short term.
Information for this report was gathered from industry sources, market data, and interviews with key stakeholders in the steel industry.