The recent domestic plate market was dominated by weaker operations. The market transactions were generally average and the transaction prices fell. As market demand has shrunk, transactions have continued to slump and total inventory has risen slightly. Due to capital shortages and other issues, the phenomenon of low-cost shipments has increased, and the phenomenon of “buy up or not buy†has become apparent. End-users have become increasingly wait-and-see atmosphere. Market prices have generally declined slightly, and individual market prices have fallen more. Big. The price continued to be overcast, mainly due to the fact that the turnover situation was relatively sluggish. In addition, the capital face continued to be tense. Businessmen tried to stimulate sales through price cuts, but they had little effect. At present, the entire market is in a state of consolidation and decline. The decline in the related varieties of hot-rolled prices also has a certain impact on the medium-board market. Businessmen have insufficient confidence in the market outlook. As of June 20, the price of 20mm medium plate in domestic key cities was 6,590 yuan/ton, which was 33 yuan/ton lower than the same period last week and up 63 yuan/ton from the same period of last month. The market prices in Shenyang and Tianjin fell by RMB 100/ton over the same period last week. The market prices in Shanghai, Beijing, Xi’an, and Guangzhou fell by RMB 30-50/ton from the previous week.
However, on the whole, the rigid intensity of terminal demand in the downstream industry has not weakened, and the tight resource situation cannot be fundamentally changed, and the market price of the support plate will enter the next upward channel after adjusting and stabilizing.
There are several main factors:
First, the rigid strength of terminal demand in the downstream industry has not weakened. The demand for medium and heavy plates, such as machinery manufacturing, shipbuilding, and construction steel structure manufacturing, is still strong. According to statistics, in the first quarter, the country's shipbuilding capacity was 3.68 million dwt, which was a year-on-year increase of 25.9%; new ship orders were 13.16 million dwt, up 5.9% year-on-year; handheld ship orders were 176.98 million dwt, a year-on-year increase of 121%. In addition, from January to April of 2008, the domestic machinery industry continued to maintain a relatively strong growth momentum, and the total industrial output value increased by 29.03% year-on-year. In addition, the current national plan for the post-disaster reconstruction of the earthquake-stricken areas has been implemented in an orderly manner. According to incomplete statistics, the accumulated steel use during the three-year reconstruction period was about 23 million tons. Therefore, the rigid demand and support for the high plate market prices stabilized and steadily increased.
Second, the ordinary plate, low alloy plate market spot resources are tight. Since 2008, steel mills have stepped up efforts to adjust their product structure, tilting their production capacity to board types such as shipboards, which has significantly reduced the resources of the market's popular and low-alloy plates. In addition, some state-owned large-scale steel mills use resources for export, leading to a reduction in the production of low-grade and low-alloy plates for the first-tier manufacturers in the domestic market, most of which are products produced by second-tier manufacturers. Due to the shortage of available resources, market prices for such specifications are high, prices are divided, and the price difference increases. In June and July, some steel mills' plate production lines were overhauled and the output was reduced. Only two steel plants were overhauled and the plate production was reduced by 100,000 tons. The current situation of tight resources cannot be fundamentally changed.
Third, cost-driven rigid support, steel factory prices continue to increase. The National Development and Reform Commission has issued specific measures for coke, electricity, oil and price adjustments. Continued growth has become an indisputable fact. The steel mills are facing huge cost pressures and have caused the factory prices to continue to increase. In June, some steel mills raised their plate prices by 200-300 yuan/ton. The ex-factory price increase of steel mills has led to higher purchase costs for traders and “upside down†prices to curb falling market prices.
However, on the whole, the rigid intensity of terminal demand in the downstream industry has not weakened, and the tight resource situation cannot be fundamentally changed, and the market price of the support plate will enter the next upward channel after adjusting and stabilizing.
There are several main factors:
First, the rigid strength of terminal demand in the downstream industry has not weakened. The demand for medium and heavy plates, such as machinery manufacturing, shipbuilding, and construction steel structure manufacturing, is still strong. According to statistics, in the first quarter, the country's shipbuilding capacity was 3.68 million dwt, which was a year-on-year increase of 25.9%; new ship orders were 13.16 million dwt, up 5.9% year-on-year; handheld ship orders were 176.98 million dwt, a year-on-year increase of 121%. In addition, from January to April of 2008, the domestic machinery industry continued to maintain a relatively strong growth momentum, and the total industrial output value increased by 29.03% year-on-year. In addition, the current national plan for the post-disaster reconstruction of the earthquake-stricken areas has been implemented in an orderly manner. According to incomplete statistics, the accumulated steel use during the three-year reconstruction period was about 23 million tons. Therefore, the rigid demand and support for the high plate market prices stabilized and steadily increased.
Second, the ordinary plate, low alloy plate market spot resources are tight. Since 2008, steel mills have stepped up efforts to adjust their product structure, tilting their production capacity to board types such as shipboards, which has significantly reduced the resources of the market's popular and low-alloy plates. In addition, some state-owned large-scale steel mills use resources for export, leading to a reduction in the production of low-grade and low-alloy plates for the first-tier manufacturers in the domestic market, most of which are products produced by second-tier manufacturers. Due to the shortage of available resources, market prices for such specifications are high, prices are divided, and the price difference increases. In June and July, some steel mills' plate production lines were overhauled and the output was reduced. Only two steel plants were overhauled and the plate production was reduced by 100,000 tons. The current situation of tight resources cannot be fundamentally changed.
Third, cost-driven rigid support, steel factory prices continue to increase. The National Development and Reform Commission has issued specific measures for coke, electricity, oil and price adjustments. Continued growth has become an indisputable fact. The steel mills are facing huge cost pressures and have caused the factory prices to continue to increase. In June, some steel mills raised their plate prices by 200-300 yuan/ton. The ex-factory price increase of steel mills has led to higher purchase costs for traders and “upside down†prices to curb falling market prices.
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