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Stainless steel strip factories are temporarily consuming inventory

Stainless steel strip factories are temporarily consuming inventory

  • Categories:Industry Trends
  • Author:
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  • Time of issue:2021-08-25 09:06
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(Summary description)This week, the raw material market's rally came to an end. Stainless steel strip factories are mainly consuming inventory for the time being, billet transactions have slowed down, and prices have fallen sharply, foreign ore prices have also loosened, and other varieties have not changed much. In terms of demand, the current strip steel operating rate in Tangshan area has increased by about 4% to 75%, and the profile has fallen by 7% to 69%. The demand situation is fair. However, due to the relatively large continuous price increase in the previous period, the profit margin of downstream companies has been continuously squeezed, and the enthusiasm for purchasing has weakened.

Stainless steel strip factories are temporarily consuming inventory

(Summary description)This week, the raw material market's rally came to an end. Stainless steel strip factories are mainly consuming inventory for the time being, billet transactions have slowed down, and prices have fallen sharply, foreign ore prices have also loosened, and other varieties have not changed much. In terms of demand, the current strip steel operating rate in Tangshan area has increased by about 4% to 75%, and the profile has fallen by 7% to 69%. The demand situation is fair. However, due to the relatively large continuous price increase in the previous period, the profit margin of downstream companies has been continuously squeezed, and the enthusiasm for purchasing has weakened.

  • Categories:Industry Trends
  • Author:
  • Origin:
  • Time of issue:2021-08-25 09:06
  • Views:
Information
This week, the raw material market's rally came to an end. Stainless steel strip factories are mainly consuming inventory for the time being, billet transactions have slowed down, and prices have fallen sharply, foreign ore prices have also loosened, and other varieties have not changed much. In terms of demand, the current strip steel operating rate in Tangshan area has increased by about 4% to 75%, and the profile has fallen by 7% to 69%. The demand situation is fair. However, due to the relatively large continuous price increase in the previous period, the profit margin of downstream companies has been continuously squeezed, and the enthusiasm for purchasing has weakened. It is expected that billet prices in the domestic market will continue to fluctuate and adjust next week. "It is expected that the economic data in the fourth quarter will rebound slightly compared to the third quarter, which will give a short-term boost to commodities." Zhang Jingjing analyzed that, overall, some varieties in the black series are still in a bear market pattern. In terms of fundamentals and individual economic data In the case of preference, there will be a short-term rebound. The repair of the current spreads all caused a short-term price rebound. From a fundamental point of view, due to the concentrated export orders of steel mills in September and the reduction of domestic supply, the domestic market is in short supply. Therefore, the short-term spot stainless steel strip price still does not have a significant downward momentum.
 
Although many favorable policies have been introduced one after another, steel mills have generally maintained a cautious attitude and the supply has not decreased significantly. The price of raw materials rose and fell. The price rose sharply in the early period, but there was a certain drop this week. The early period was mainly due to the limited production of steel mills in Beijing surrounding areas during the APEC meeting, resource shortages and active purchases; but since the beginning of this week, as the transaction of finished products has weakened, the billet has further pushed up. Insufficient power, so the high point has fallen by 80 yuan/ton so far. The iron ore market fluctuates slightly and transactions are average, and merchants generally maintain a relatively strong wait-and-see attitude. On the one hand, the price trend of last week combined with the transaction situation shows that the basis for the continuous rise of the stainless steel strip market is insufficient. Although the continuous rise after the holiday has led to an increase in transaction volume, the pessimistic atmosphere of traders has been eased, and some market inventories have been digested, but the data It shows that the crude steel output of steel mills has not been cut sharply, and the market supply pressure still exists. At the same time, due to capital and inventory issues, the iron ore market continues to be sluggish, steel mills are not enthusiastic about purchasing, and ore prices are unable to follow up and rebound. Supply pressure and the weakness of the mining market may restrict the room for steel prices to continue to rise. On the other hand, in the past two months, with the gradual withdrawal of the US QE policy, the U.S. dollar index stopped falling and rebounded and rose sharply. Oil, metals, etc. fell sharply, dragging down steel futures prices, which affected the mentality of market merchants and lacked confidence in continuing sales restrictions.
 
At present, terminal demand is not ideal. Due to the constraints of capital and supply, businesses lack the basis for continuing to push up. In the short term, considering the psychology of selling goods and cashing in, the price of steel may fluctuate and consolidate. The development of any industry is inseparable from the national conditions, industrial structure and global economic environment. In particular, the industrial structure determines the development direction and product positioning of various industries. This is not only a requirement for marketization, but also a respect for economic laws. At present, China is still in the process of industrialization and urbanization. Therefore, the demand for steel is mainly from large-scale goods; and China's manufacturing industry is also in a stage of extensive development, with mostly low- and medium-grade products. Relatively limited.

More Information

Free forgings and die forgings are an important class of stressed structural parts and high-precision technology products. China has become the world’s primary power in aluminum forging production. Southwest Aluminum (Group) Co., Ltd. and Northeast Light Alloy Co., Ltd. produce 5m and The 9m-class large forged ring not only meets the needs of the development of China's aerospace industry, but also batches of other aluminum alloy forgings are installed on thousands of Boeing planes. The parts are qualified and there has never been a quality accident.
Dongguan Qishi Yongfa Metal Products Factory is the first enterprise specialized in the production of argon arc welded stainless steel pipes in Dongguan, which is affiliated to Xingye Metal Materials Co., Ltd., with an annual production capacity of 30,000 tons. The products sell well in many provinces and cities across the country and are exported to many countries.
The price of imported iron ore has soared, and domestic iron ore companies are booming. Iron and steel companies that use iron ore as raw materials feel pressured. In order to absorb the cost of price increases, steel companies have raised product prices and use steel as raw materials downstream. Enterprises are all rumblings. In this industry chain, power equipment manufacturers that have suffered from raw materials for a long time reacted particularly strongly.
In recent years, the chromium-manganese 200 series nickel austenitic stainless steel has developed rapidly in China, and its market share has also increased year by year. However, it is particularly important to note that because 200 series stainless steel can only be used for general purposes that are resistant to weakly corrosive media, its performance cannot completely replace 300 series stainless steel.
The domestic stainless steel strip market trend is obviously stronger than that of steel, especially the relatively strong performance of imported mines, and the call for price increases of coke has been high. However, as steel prices gradually approached the marginal cost of steel mills, the purchasing enthusiasm of steel mills weakened. After the second half of the month, the trend of the raw material market began to weaken, billet and scrap fell relatively sharply, and the prices of imported iron ore and coke also eased at the end of the month. Due to the sluggish demand in the steel market during the off-season, steel prices have also been declining. Steel mills have reduced production and increased maintenance, which has a greater impact on the prices of raw materials. In fact, the prices of raw materials are still stable except for iron ore. Both have fallen sharply.
DongGuan XingYe Metal Material Co., Ltd.

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Copyright© 2021 DongGuan XingYe Metal Material Co., Ltd.  All rights reserved

粤ICP备05060573号    Powered by www.300.cn

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