Active reduction in price to facilitate the delivery of steel prices after the market still has room to fall

Global market fluctuation narrowed, international crude oil closed up, domestic steel overnight turned red for a while, but weakened again within the day, and finally closed down slightly, raw material end is relatively firm, the market transaction is weak, traders actively reduce the price to facilitate the delivery, steel prices still have room to fall.

1. Steel inventory will be reduced by 460,000 tons

On Friday, the output of large varieties decreased by 54,500 tons, and the inventory decreased by 462,700 tons. Moreover, the factory and social warehouses continued to double drop. The decline of rebar was slightly slower than that of last week, the apparent demand decreased by 56,000 tons this week, and the total demand decreased by 19,800 tons, reflecting the trend of slow decline in demand remained unchanged.

2. Regional inventory decline slowed down

This week building materials and hot roll social bank decline have slowed down, but the regional differentiation.In addition to the expansion of the decline in social inventory in North China, the rest of the market are showing a slowing trend.And the southwest inventory by negative to positive, small accumulation.However, from the perspective of total inventory level, the inventory pressure in South China and East China is obviously lower than that in North China and Northwest China.

In terms of hot volume, the inventory decline in North China expanded, while the inventory decline in other markets slowed down. The total inventory pressure was mainly concentrated in central and eastern China markets.

3, domestic steel mill blast furnace operation rate fell slightly

The latest data shows that there are 313 blast furnaces in 106 steel mills in Hebei, Shandong and Fujian provinces, and the operating rate of blast furnaces this week is 78.27%, with a decrease of 0.32% month-on-week and 1.60% month-on-month.There are 347 sintering machines in 141 sintering plants, and the sintering operation rate this week is 65.71%, with a decrease of 2.02% month-on-month and a rise of 0.29% month-on-month.Steel mills have limited room to cut production.

4. Vale's iron ore exports fell by 3.6% year-on-year

Brazil's Vale exported 23.8 million tons of iron ore in November, down 9.7 percent from October and up 2.2 percent from a year earlier, according to the Confederation of Brazilian Iron and Base Metals Mining Industries.Vale's iron ore exports fell 3.6% from a year earlier to 245.64 million tons in the january-November period.In terms of domestic sales, Vale sold 1.47 million tonnes of iron ore in November, up 8 per cent year on year and 10.5 per cent from October.Vale sold 13.75 million tons of iron ore in its domestic market in the january-November period, down 5.9 percent from a year earlier.

The decline in Vale's exports and total domestic sales also reflects the mismatch between supply and demand, with high end-cost levels providing some support for steel prices.

5. Panel exports in November increased by 4.6% year on year

According to the General Administration of Customs, China exported 2.8 million tons of steel plates in November, up 4.60% year on year.From January to November, exports totaled 29.7 million tons, down 17.00% year on year.The recovery of sheet metal exports in a single month reflects the pull of domestic steel demand after the resumption of overseas work and production, but the cumulative export still showed a significant decline, and the epidemic is still spreading, the closure of the City of the UK on the market impact, the external demand is still more uncertain.

6, period steel decline slowed down, most of the spot decline

Steel night turn red sun down, the final small close down.Iron ore was up 9.5 at 1036, coking coal up 11.5 at 1626 and coking coal up 59.5 at 2754.5.

Spot, 18 of the 24 rebar markets fell 10-120, 20mmHRB400E average price 4426 yuan/ton, compared with the previous trading day down 41 yuan/ton;

Among the 24 hot coil markets, 17 fell 30-100, 2 rose 30-50, and the average price of hot rolled coil was 4865 yuan/ton, which was down 32 yuan/ton compared with the previous trading day.

15 of the 24 markets in the middle board fell 20-90, 14-20mm average price in the middle board 4742 yuan/ton, compared with the previous trading day down 40 yuan/ton.

In summary, steel prices decline slowed, the trend of relatively strong raw materials.The market transaction is weak, wait and see mood is strong, businessmen take the initiative to reduce the active shipment, steel prices loose down 50-100, this week apparent demand fell slightly, is expected to stabilize steel prices tomorrow in part down.