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On the final day of the month, the market opened with early trading activity, showing a continued downward pressure on the prices of Yonghong's 42CrMo round steel. Prices for Φ16-40mm dropped by 20-50 yuan per ton, while the overall price for Φ12-14mm decreased by 20 yuan per ton. The decrease for Φ18-20mm was slightly less pronounced, ranging from 10-20 yuan per ton. Overall, the market appears to be adjusting steadily downwards.
As we approach the end of the year, it feels like winter storage might just be the last lifeline for merchants this season. Recently, scrap prices have fallen by over 100 yuan per ton in certain regions. While many businesses remain cautious and观望, a few merchants are already preparing to act. The phrase "success favors the bold" comes to mind—everyone is hoping for a turnaround. However, one must question whether the current decline provides enough time and space for the market and its merchants to recover.
The rise in steel prices driven by demand for construction materials has been fleeting, differing only in how long the bloom lasts. The market outlook remains tepid, neither overly optimistic nor pessimistic. Even with a slower production growth rate for 42CrMo round steel anticipated this year and next, there seems to be limited room for improvement. The overcapacity issue in the 42CrMo round steel industry persists, making recovery challenging. Additionally, the slowdown in downstream demand could outpace the reduction in steel output. In short, the situation for Yonghong’s 42CrMo round steel market looks bleak.
Today’s price information comes from various sources, including our partners at [source names]. Please note that these insights are meant for informational purposes only.
To sum up, with the ongoing decline in Tangshan billet prices and futures continuing to fall, demand remains weak, and trading activities sluggish. As we enter December, let’s hope for better news in the coming weeks. Here’s a visual snapshot of the current market conditions:
The resilience of merchants is being tested, and while optimism is hard to come by, there’s always a chance for a rebound. Let’s stay hopeful as we navigate these challenging times.