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News Details
Cold rolled coil market clunker
News Category:News   Author:admin    Published on:2014-08-284    Writing:【】【】【

"Silver ten" coming on the market, most operators cautious attitude. Li Zhong, general manager of Shanghai Rui-kun Double Metal Materials Co. predicted in October of cold rolled coil market is hard to pick up, but the hot-rolled coil market is expected to begin to stabilize, cold rolled coil market will continue to bottom.

According to Zhong double tracking research, in September, the average price of domestic hot rolled coil market cumulative decline of up to 200 yuan / ton, the Shanghai market 5.75mm Q235 hot rolled coil offer dropped to around 2900 yuan / ton, the lowest level in recent years of history . Similarly, cold rolled coil market is sluggish, prices continued to decline in shock. As of the end of September, the national average price of 1.0mm cold rolled coil has fallen below 4,000 yuan / ton, the cumulative decline in the chain more than 100 yuan / ton, the most cold-rolled coil market price less than 3900 yuan / ton, and constantly refresh historic lows. Is expected to post a cold rolled coil prices continued consolidation, significantly increases the likelihood that no longer exists.

Steel prices can not rise is mainly due to the cold rolled coil market supply and demand pattern has not changed, in this case, the steel still adhere to the "do not cut prices, none let the city" business strategy, a number of large steel enterprises in October cold rolled coil prices fell 100 yuan / ton to 200 yuan / ton, but production is still increasing, so the contradiction of supply exceeding demand intensified.

However, hot-rolled coil market is expected to post performance will be better than cold rolled coil market, limited downside. The following reasons:

First, the September decline in the market price of hot-rolled coil is large, has entered the bottom area. Today, the hot-rolled coil actual transaction price (2900 yuan / ton) and rebar prices have been similar. Currently, the hot-rolled coil steel trading business generally tight cash resources, sales pressure is not, most traders do not want a sale, a further decline in power prices began to weaken.

Secondly, the hot-rolled coil production increase is small. National Bureau of Statistics data show that from January to August this year, the domestic hot-rolled sheet and hot rolled wide strip production was 39.427 million tons, an increase of only 0.16%, which in August production growth of only 0.08%. The cold-rolled sheet and cold-rolled wide strip earlier yields an increase of 9.1% MoM in August production increased by 11.8%, far exceeding the hot-rolled coil. And 9 months late, the major hot-rolled coil steel producers have arranged a cut or repair. Mid to late 10, is expected to produce more domestic hot-rolled coil production companies will join overhaul ranks, the overall yield is estimated at 100 million tons, which will be rolled coil market prices stabilize late a major driving force.

Thirdly, hot-rolled coil export situation better. The latest data show that in August, hot rolled coil export 1.095 million tons, an increase of 50.57%. January to August, China's net exports of hot-rolled coil was 6.16 million tons, is 237 percent a year earlier. This will ease the supply pressure in the domestic spot market to some extent.

Finally, the spread has been too cold rolled coil. Currently, cold-rolled coil prices for 3900 yuan / ton to 4,000 yuan / ton, hot-rolled coil prices for 2900 yuan / ton to 3,000 yuan / ton, a difference of 1,000 yuan / ton, more than the normal range. Post-rolled coil prices limited space.

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