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Price divergence in the coil market

Since entering 2022, cold and hot rolled coil market transactions are flat, steel traders to speed up shipments, the market generally cautious attitude. 20 January, Shanghai Rui Kun Metal Materials Co. The price will fluctuate slightly.

  According to Li Zhongshuang introduction, since the beginning of this year, cold and hot rolled coil market is not running smoothly, price fluctuations, up and down, showing the phenomenon of differentiation. At present, the hot-rolled coil market "supply and demand double weak" characteristics are obvious, is expected to stabilize this week before the Spring Festival, the cold-rolled coil market is a small fluctuations.

  From the point of view of the market trading conditions, steel traders generally feel poor sales, downstream users basically on-demand procurement, some merchants in order to ship more, choose to reduce the price of sales, resulting in steel prices "dark drop" phenomenon is more common. However, on the whole, the steel trader's mentality is basically stable, the cold and hot rolled coil market this year still have expectations.

  Li Zhong Shuang that, in the short term, cold, hot rolled coil market will maintain the current operating trend, by the Spring Festival period, "there is no market" and other factors, the recent cold, hot rolled coil prices are basically stable, after the Spring Festival is expected to stabilize and strengthen.

  First, the downstream end-user production and sales conditions turn out to be good, the strength of demand is expected to enhance. To the automotive industry, for example, in December 2021, the automotive industry production and sales conditions turned better, production and sales growth in the ring, production growth from negative to positive, sales decline narrowed 7.5 percentage points. Entering 2022, the auto industry got off to a good start, with production and sales volumes continuing to climb. Statistics from the Passenger Vehicle Market Information Joint Committee show that in the first week of January this year, the average daily retail sales volume of China's overall narrow passenger vehicle market reached 58,000 units, up 6% year-on-year and up 27% sequentially. The China Association of Automobile Manufacturers expects China's vehicle sales to reach 27.5 million units in 2022, an increase of about 5% year-on-year. Some industry analysts believe that the demand for steel in the automotive industry in 2022 will be about 56 million tons, up 2.8% year-on-year.

  Second, cold and hot-rolled coil inventory pressure is not large. Statistics show that, as of January 14, the country's 35 major markets of hot-rolled coil inventory of 2.196.2 million tons, ring than the previous week by 11,900 tons, down 0.54%; cold-rolled coil inventory of 1.12125 million tons, ring than the previous week by 0.15 million tons, down 0.12%.

  Third, the rigid cost support cold, hot rolled coil price stability in the strong. Recently, iron ore, coke, steel scrap and other raw fuel prices continue to move higher. For example, on January 20, 62% grade imported iron ore Platts index price of 133.7 U.S. dollars / ton, compared with the beginning of this year, 119.5 U.S. dollars / ton up 14.2 U.S. dollars / ton. As a result of the climb in steel raw fuel prices, steel enterprises increased cost pressure, so in the development of steel ex-factory price policy is basically to support the price, the steel price stabilization formed a strong support.

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