Steel prices rose across the board, June 2020
Steel prices rose across the board, June 2020
In June 2020, steel mills rose 350 yuan! Manufacturing has expanded for three consecutive months! Steel prices are all rising!
In June, the period started to rise synchronously. Shagang Construction Materials raised by 50 yuan. With the continued strengthening of the raw material end price, steel mills have a strong willingness to price, the manufacturing PMI has been in the expansion range for three consecutive months, and demand is still supported.
Steel prices rose across the board, up to 90 yuan
1. Following the increase in steel prices on Saturday and Sunday, prices continue to increase today. Adding the increase on Saturday and Sunday, the highest rise is 90. Judging from the transaction, the overall transaction of building materials was better than that of plates.
2. 23 of the 24 major markets of rebar increased by 20-50 yuan, and the average price of 20mm HRB400E was 3777 yuan/ton, an increase of 32 yuan/ton from the previous trading day;
3. 22 of the 24 hot coil markets rose 20-90 yuan, and the average price of 4.75 hot-rolled coils was 3715 yuan/ton, an increase of 47 yuan/ton from the previous trading day;
4. 15 out of the 24 markets of the China Board rose 10-40 yuan, and the average price of the 14-20mm Puzhong Board was 3827 yuan/ton, up 20 yuan/ton from the previous trading day.
5. In terms of futures, today's snails and futures volume hit another record high, with shocks rising. The snail rose 44 yuan to close at 3577 yuan, the future volume rose 55 yuan to close at 3549 yuan, the pressure above is still there, pay attention to the changes in pressure levels around 3600 yuan and 3560 yuan.
Shagang Construction Materials is raised by 50, and Hot Roll is raised by 350
With the strong price increase of raw materials at the end of May, steel mills have a strong willingness to increase prices. Today, Shagang introduced the price of building materials in early June to be raised by 50 yuan/ton, and the ex-factory price of hot coil in June was raised by 350 yuan/ton. Above the market price, there is still room for improvement in June.
Shagang has raised the price of rebar, coiled screw and high wire by 50 yuan/ton. The ex-factory price of Ф16-25mmHRB400 rebar is 3800 yuan/ton, the ex-factory price of Ф8-10mmHRB400 disc screw is 3900 yuan/ton, and the ex-factory price of Φ6.5mmHPB300 high-speed wire is 3860 yuan/ton. Moreover, the planned amount of the previous period was completed, and the thread was compensated by 60 yuan/ton, the coil screw was 50 yuan/ton, and the high-speed wire was 50 yuan/ton.
Shagang's hot coil Q235 price is increased by 350 yuan/ton; the current hot coil Q235 5.5*1500mm*C execution price is 3750 yuan/ton, and SPHC 4.0*1250mm*C execution price is 3780 yuan/ton.
Manufacturing PMI is 50.6%, expanding for three consecutive months
In May, China's manufacturing purchasing managers index PMI was 50.6%, a decrease of 0.2 percentage points from the previous month. It has been above the 50% line for three consecutive months, reflecting the continued recovery of domestic manufacturing, but with the expansion of the base, the recovery of manufacturing has slowed down. At the same time, the Caixin manufacturing PMI rebounded to 50.7 in May, and entered the expansion zone for the first time after the outbreak.
In the classification index, the production index, new order index and supplier delivery time index are all higher than the critical point, and the raw material inventory index and the employee index are lower than the critical point. It reflects the continuous improvement of production and the increase in market demand. Since the manufacturing industry is greatly affected by the overseas epidemic, there is a certain degree of uncertainty, and the degree of recovery needs to be continuously observed, which is closely related to the release of demand for sheet steel. Judging from June, the overall trend continues to improve as overseas work is accelerated to resume production.
Steel industry PMI rebounds to expansion range
According to data from the China Iron and Steel Logistics Professional Committee, the PMI of the steel industry in May was 50.9%, an increase of 5 percentage points from the previous month. It was also the first time since the epidemic that it rose to more than 50% of the gloomy line and entered the expansion range.
In terms of sub-indicators, the new order index was 52.9%, an increase of 13 percentage points from the previous month, and the new export order index was 31.9%, which was below 40% for the third consecutive month, reflecting the overall rebound in steel demand, but external demand is still at a low level , And stayed below 40% for three consecutive months.
The production index was 56.4%, an increase of 3.0 percentage points from the previous month; the purchase volume index was 51.0%, an increase of 2.2 percentage points from the previous month; the raw material inventory index was 41.2%, an increase of 2.9 percentage points from the previous month; the finished product inventory index was 29.2 %, a decrease of 9.6 percentage points from the previous month. It shows that the production of steel mills is accelerating, and the consumption of raw materials and the destocking of finished products are accelerating, which forms a support for steel prices.
To sum up, the steel price in June ushered in a good start, the price as a whole rose, and the raw material price remained strong, and the steel mills were willing to take the price. From time to time, the limited production news is released. From the perspective of the production and demand structure, it will still maintain a double-increasing pattern and continue to fall in the inventory. Demand-side support is still in place, major projects are accelerating, and the manufacturing industry is gradually recovering. The market expects this month's RRR cut to be higher. Overall, steel prices will continue to rise in June. Short-term focus on Tangshan's production restrictions and fluctuations in the rate of deceleration, it is expected that steel prices will maintain a strong trend tomorrow.
