July hardware raw material market prices see rise

The profile market was still the main weakness in June, but there were several minor rebounds in the profiles in June, but most of them followed the upward trend of billet price increases. However, such demand-free rebound did not last long. Today's rally will fall tomorrow, the raw material billet market is still under pressure, the downstream demand for the angle slot is difficult to form an effective support for market transactions, while the business mentality is declining. Therefore, the profile market is still facing greater downward pressure.

Profile market inventory:

Macro-level: From January to May, the gross profit of industrial enterprises above designated size was 208.125 billion yuan, an increase of 12.3% over the same period of last year, of which, the profit from main activities was 233.77 billion yuan, an increase of 11.4% over the same period of last year. Due to overcapacity and sluggish steel prices, the entire steel industry has fallen into a profitable plight. Today, the financial constraints are spreading from steel traders to steel mills. At present, there are a number of steel mills in the situation of financial constraints, especially the survival status of small and medium-sized steel enterprises worrying. Luo Baihui, chief analyst of Jinmo Steel, predicts that in the future when liquidity is unlikely to be significantly loose and the steel industry boom cannot be significantly lifted, the capital chain tension in the steel industry will not be a short-term phenomenon or become the norm.

In terms of production capacity, according to the latest statistics from China Iron and Steel Association, the daily output of crude steel of key enterprises in the middle of June was 1.7455 million tons, an increase of 14,000 tons, which was a month-on-month increase of 0.79%, which was only lower than the 1.748 million tons created in early May of this year. Occupying a new high; the national crude steel production is expected to reach 2.164 million tons, an increase of 0.8 million tons, an increase of 0.37%.

On the demand side, affected by the negative effects of the capital market, steel traders are cautious in purchasing and there are few market transactions. However, steel mills have normal production capacity, the contradiction between supply and demand is still sharp, and the profile price is weak. However, due to the impact of the billet plant overhaul, the supply of billets has been strained. In the long-term decline in the market, the market very price mentality highlights, steel traders also 趁 趁 profile before the rebound, a large number of replenishment operations, but high-price transactions slowed down, the profile market steady decline, wait and see mood is getting stronger.

In terms of steel mills, Rizhao, Anshan Baode, Bayi Jiayu, Acheng Steel and other mills have introduced steel price adjustment policies, in which Rizhao Steel raised the ex-factory price of 30 yuan/ton for all steel grades, but due to previous ex-factory prices Low, so the impact of the price adjustment is not great; Anshan Baode made two consecutive price adjustments of steel products, the cumulative reduction of 100 yuan / ton; Bayi good domain diagonal channel increased 20 yuan / ton; Acheng Steel Factory First increase 50 yuan / ton for steel, after its ** 30 yuan / ton, a cumulative increase of 20 yuan / ton. Although the price adjustment between steel mills has some differences, but from the subsequent measures, there are still most of the steel mills are not optimistic about the market, from the perspective of traders, in order to ensure shipments, and to meet the steel mill policy, there are still late The price may be shipped.

Market: In the absence of clear positives and significant bearishness, the financial market is also in a turbulent pattern. Steel prices will fluctuate within a range without significant improvement in the fundamentals. After the “money shortage” caused major turmoil in the stock market, the support of the central bank stabilized the “military spirit”. Moreover, the recent shortage of profile resources has given the price a certain amount of support.