Steel City bottoming process continuation

Today's domestic steel market fluctuated within a narrow range. The market was not very popular and cautious. The capital market slumped again. However, rebar and electronic trading were relatively defensive, and the spot market for steel stocks basically remained adjusted. The market was not willing to fall. However, the plunge in the stock market still reflects the current dilemma facing China's economy from another level, and the cold-eyed regulators are on the sidelines. Waiting for the market to digest the bad news shows the determination of the new government regulation. At present, the risk of economic downturn is still there, and the spot market of the steel market is still heavy and the bottoming process will continue.

Today, the average price of domestic Ф25mm tertiary rebar in domestic key cities was 3,393 yuan (ton price, the same below), down 1 yuan from last Friday; the average price of domestic high-profile Ф6.5mm high line was 3,413 yuan, up 3% from last Friday. Yuan; The average price of domestic 5.5mm hot-rolled coils in key cities in China is 3,496 yuan, up 3 yuan from last Friday; the average price of 1.0mm cold-plates in domestic key center cities is 4,497 yuan, down 16 yuan from last Friday; domestic priorities The average price of a 20mm medium board in the city was 3,530 yuan, which was 8 yuan less than last Friday.

In respect of raw materials, today, the 150*150 plain carbon billet in the Tangshan region is 2,990 yuan, which is 20 yuan less than last Friday; the price of the 65-66 grade acidic dry iron powder in the Tangshan region is 1,020 yuan, up 10 yuan from last Friday; Tangshan The regional secondary metallurgical coke price was 1,300 yuan, which was the same as last Friday.

The rebar main 1310 contract was opened at 3,501 yuan/ton in the morning on the 24th, and the price oscillated all day, lowering at a low of RMB 3,442 per ton and RMB 3,505 per ton at RMB 3,450/ton, compared with the previous day (21st). The settlement price fell by 43 yuan/ton, with 4,130,862 transactions, 1,672,382 open interest positions, or 206,986 contracts.

All along, the stock market is a “barometer” of the economy. So for today’s sharp drop of more than 100 points, and once again approaching the pre-liberation market, the market’s expectations of continued downward economic growth in China have become stronger. On the other hand, it comes from a number of international investment banks' recent short-term expectations of the ***, because China's economic growth is slowing down. The flight of hot money and the current domestic interbank lending rate have skyrocketed, and the hopeful central bank is “selfless”. The return of capital to the operating methods has further disappointed the market. The "pro-mother" of the central bank has become a "stepmother," which has caused bank stocks to lead the market to sell into the market today. The Shanghai Composite Index fell 2000 points, the lowest dropped to 1959, then saw a small pull up, and nearly 200 stocks fell. Judging from the performance of the stock market in recent days, the economic downturn is still accelerating. Whether it is the expansion of the US QE reduction or the policy effect that it will stop next year, or the over-stretched financial situation faced by China’s commercial banks, both internal and external difficulties are now being overcome. Therefore, although the performance of the snails and electronic discs has been relatively resilient in recent days, it is still difficult for them to remain independent, and the spot market is subject to the high pressure of output and it is difficult to significantly increase its head. Therefore, the weakening of the steel market will continue.