After the Spring Festival holiday, the domestic steel market has entered an upward channel for two consecutive weeks, but it has shown signs of a correction after the surge. The price of iron ore has risen to a new high in four months, but it is still in a low range overall. The iron ore business of global mining giants has successively suffered losses.
According to the latest market report provided by the well-known domestic steel information organization "My Steel", in the latest week, the domestic spot steel price composite index closed at 77.19 points, an increase of 2.37% in a week. At present, the price of steel futures is rising and falling, the price of steel billet is still rising, and the spot price of steel is "ending" with a slight correction after a big rise. In the early stage of this week, the spot steel price rose strongly, but the demand failed to give enough support. The market began to wait and see cautiously, and merchants' quotations loosened slightly.
According to analysis, in the construction steel market, prices continue to rise. Ton prices in Shanghai, Hangzhou, Guangzhou and other places rose by 10 yuan to 80 yuan a week. However, the specific transaction situation varies from place to place. Shanghai and other places are under the high price, the demand cannot be sustained, and the price is loose. However, prices in the Beijing-Tianjin-Hebei market continued to rise, transactions were acceptable, market confidence was boosted, and the overall trend was stable and strong.
The overall market price of sheet metal continues to rise. The price of hot-rolled coils has risen significantly, and the ton price in Shanghai, Guangzhou, Wuhan and other places has risen by 30 yuan to 110 yuan a week. The situation in various places is basically the same, and the market has entered a wait-and-see stage when the spot price has risen sharply, showing signs of sideways trading. The price of medium and thick plates has risen sharply, and the ton price in Shanghai, Jinan, Wuhan and other places has increased by 50 yuan to 170 yuan a week. In Kunming and other places, although the transactions were weak, merchants were optimistic in the low-stock market.
In the global iron ore market, on the one hand, there has been a phased correction in ore prices, and on the other hand, the loss of mining giants is common. According to the latest report of "Nishimoto Shinkansen", in the domestic ore market, the price of iron fine powder in Hebei rose slightly in February. After the Lantern Festival, domestic mines began to resume production one after another, and the enthusiasm and quantity of steel mills to purchase domestic mines improved slightly compared to before. In February, the price of imported ore rose sharply, reaching US$51.2 per ton on February 20, a new high in nearly four months. As of February 25, the Platts 62% grade iron ore index closed at US$49.55 per ton, an increase of US$7.15 from the end of last month. However, the iron ore business of global mining giants is no longer what it used to be. BHP Billiton recently announced a net loss of US$5.67 billion in the first half of the new fiscal year, the first loss in more than 16 years. Vale also posted a net loss in 2015. Some mining companies have begun to seek to sell iron ore assets.
According to the analysis of relevant institutions, in the past two months, domestic steel prices have risen sharply in the off-season, and low-priced resources in the market have rapidly gathered. In March, the domestic steel market will face a certain "cash-out" pressure.
However, considering that the recent policy level has formed a certain "good" on both ends of the steel supply and demand, the overall supply and demand situation in the market is expected to further improve.