Steel prices are consolidating at high levels, and spot demand is poor

Xi'an News, on the 31st, construction steel products in Xi'an market maintained stable operation, terminal demand increased, and overall transactions were acceptable.

As of press time, the leading steel mills in the Xi'an market are quoting 3,900 yuan/ton for large threads, 3,890 yuan/ton for high-speed wires, 4,030 yuan/ton for coils, and 3,830 yuan/ton for mainstream large threads from Haixin and Jianbang.

  On the first day after the holiday, the forward market pulled up straight in early trading, digesting the bullish factors such as the rise in billet prices. However, the good times did not last long, and the gains quickly retreated. Coking coal futures led the decline, with a decline approaching 4%, coke futures fell nearly 3%, and snails 1710 In the afternoon, it quickly fell below the 3200 point. In the afternoon, the Xi'an construction steel market was relatively wait-and-see, and the overall quotation was slightly loose.

In terms of transactions, although the billet continued to rise during the holidays, the willingness of downstream customers to accept it was not high, and spot demand shrank. Today, the overall transaction in the Xi'an market is less than 6,000 tons, and most of the downstream terminals mainly purchase and stock on demand after the holiday, and the market resource transfer is not active. 

In terms of resources, the overall inventory in the Xi'an market after the holiday remained below 200,000 tons, and some resources were in short supply from time to time. Only a small amount of remote resources were available, and the overall inventory remained low.

 

 On the whole, as the environmental protection inspection team withdrew one after another on the eve of the Dragon Boat Festival, the off-site steel mills started to work in full, triggering market concerns about the increase in stocks in the future. Most merchants believe that the weakening of demand in the later stage is expected, and the price is difficult to break through the previous high point, or as the demand decreases, the price of Xi'an construction steel enters an adjustment stage, and the Xi'an market may continue to fluctuate within a narrow range in the short term.