Many factors constrain steel prices in the steel market to fall again

On the 21st, the price of building materials in the spot market continued to decline, and there was no significant improvement in transactions. Although the new round of ex-factory prices of Shagang and Yonggang rebar remained flat for three consecutive days, it was difficult to boost the market due to insufficient demand. The sharp drop in yesterday's Tangshan billet will continue to affect the market's fragile confidence.

In addition, 21 days snails hit a new low, but also worsened market confidence. On the day, the main force 1301 gapped lower and opened at 3597 yuan, the intraday low of 3578 yuan, and then refreshed low. Afterwards, it stabilized and rebounded. It finished sideways in 3590 and closed at 3594 yuan, down 0.50%.

Looking back at the Shanghai market yesterday, the overall volume of transactions declined, and the outlook for the market outlook for the company's market outlook increased, making the market price fall again, with individual declines reaching RMB 30/t. At present, the production enthusiasm of major steel mills in East China remains unabated, and the production of crude steel remains high. The resources to Shanghai in the later period are still relatively high, and the weak domestic demand will continue to be suppressed. In early trading today, the Shanghai market is dominated by weak stability, but the market outlook does not rule out the possibility of continued decline.

The Beijing building materials market continued to decline today, the general range of 10-20 yuan / ton. Due to the drop in billet price of RMB 50/ton yesterday afternoon, the confidence of traders was once again hit, and prices have only been reduced by various companies. The pessimistic attitude of the market has become more serious, and businesses with a wait-and-see attitude have gradually increased.

The Tianjin market that belongs to North China performed slightly better today than the Beijing market. Most merchants in Tianjin maintained their price level yesterday. “Small part” was due to the high selling price yesterday and the offer moved closer to the low price. However, today's disk screw prices have seen a more significant decline, because some time ago the disk resources are less, and the gap between the three large threading opened a gap of more than one hundred yuan, but today the disk resources continue to arrive, the value of natural return .

Starting yesterday, with the further decline of other leading market building materials, the Guangzhou market has fallen. Mainly in the second and third line resources, the decline in the resources of Handan Iron and Steel is relatively small, in addition the northern wire is also basically stable. The overall transaction is more general, after all, the price is once again in the down channel, the market is more wait and see.

At present, the construction material spot market has a relatively high probability of continuing to operate weakly. In late August, the market may have spent the consolidation. However, due to the fact that there was no market improvement in August, we only hoped that the low season could boost demand.