On the 19th, the price of domestic hot coils fell sharply

According to the latest monitoring data, in the case of continued declining steel prices in the country, the two-day long-term price jumped sharply, making the market more pessimistic, resulting in hot spots in Shanghai, Tianjin, Beijing, Jinan, Nanjing, and Chengdu. The price of the coils dropped from RMB 70-190/tonne. In respect of raw materials, today ore, iron powder, pig iron and billet continue to decline. Tangshan billets dropped by RMB 110/t yesterday.

On the morning of the 19th, the decline in the domestic steel spot market was hard to change. Beijing, Tianjin, Lecong and other places accelerated their decline, and the decline in some varieties increased significantly compared with the previous trading day. Yesterday, the price of Shanghai's hot rolling in the plate fell again. The 4.75 HR volume fell by 130 yuan/ton to 4,250 yuan/ton.

In terms of sub-categories, the prices of domestic building materials, HRC, and plate prices generally fell today, ranging from RMB 10-190/tonne. The prices of HRC in some regions fell by RMB 100-190/ton over the previous trading day. The average domestic HRC market price in today's domestic market fell by nearly RMB 70/tonne compared with yesterday. Tianjin, Beijing, Shijiazhuang, Jinan, Nanjing, and Chengdu had prices ranging from RMB 100-190/tonne.

In the morning, the building materials and plate market fell as a whole. Prices of some varieties in Tianjin, Beijing, Wuhan, Nanning and Chongqing building materials markets were downgraded by RMB 50-60/ton; Shanghai, Tianjin, Beijing, Jinan, Xi’an, Nanjing, and other places plate Prices have dropped sharply by 50-100 yuan/ton.

The long-term dip in the long-distance market yesterday affected the spot market of steel products to drop sharply. Traders have a strong willingness to dump goods and have repeatedly lowered the market price. However, from the perspective of market feedback, under the state of pessimism, even if the merchants adopt a downward price adjustment method, shipping is more difficult. However, some traders believe that the recent acceleration of the pace of decline may indicate that the rate of decline will be faster and the rebound rate may be even more violent.

In the raw material market, the Mysteel Indian ore price index today fell by 6,63.5/63%, and the 159,53/52% print index was 87,61.5%. The Australian meal index was 147. The continued decline in the price of imported minerals in the external disk caused the pessimism in the market to persist and traders cautiously operated. Due to serious losses, some blast furnaces of steel mills have been overhauled and stopped production. Most of the steel mills have no procurement plans in the near future and they mainly use depletion stocks.

The Baltic Index (BDI) continued to fall today; the billet price in Tangshan was reduced by RMB 110/t yesterday, and the transaction volume was weak. Scrap, billet and pig iron markets continued to experience a weaker downward trend. Metallurgical coke prices in some regions were weak and the transaction volume was weak.

Fundamental US stocks rose strongly last night. The major European countries' stocks were up and down. Crude oil ** rose 2.3%, gold ** fell 1.4%; Moody's downgraded Spain's sovereign rating.

China significantly reduced US$36.5 billion in U.S. debt in August; the Ministry of Railways was supported by ministries and commissions, and Tiejian bonds officially became government-backed bonds; China determined the second batch of urban mineral demonstration bases; Chongqing’s urban and rural master plan was approved.