Steel market price forecast on December 23

Rebar: On December 22, the average price of 20mm grade 3 rebar in major cities across the country was 4582 yuan/ton, an increase of 89 yuan/ton from the previous trading day. Yesterday’s early trading period, the snail impact dropped. In the morning, steel mills in most regions continued to increase the ex-factory prices. The domestic construction steel market prices continued to rise, and the overall increase was significantly narrowed. In the afternoon, as the overall black futures dropped significantly, the market bearish sentiment spread, and most merchants negotiated prices for shipments. The price drop in some parts of East China was more obvious. At present, with the black futures market undergoing adjustments and a strong atmosphere in the market, it is expected that domestic construction steel prices may fall at a high level in the short term.

Hot-rolled coils: On December 22, the average price of 4.75 hot-rolled coils in major cities across the country was 4,994 yuan/ton, an increase of 55 yuan/ton from the previous trading day. Yesterday’s morning futures market rose sharply. The spot market’s mentality was relatively optimistic. Merchants’ quotations continued to rise. However, after the recent price increase, the downstream price acceptance was low, mainly due to speculative demand for replenishment. Market transactions were difficult to maintain. After yesterday’s price rise The transaction is relatively sluggish. In the afternoon, with the sharp correction of the futures market, the spot market mentality weakened, merchants' quotations fell sharply, and transactions were still relatively poor. Due to the recent price increase too fast, the downstream has some difficulties to accept, and the price correction is normal. However, the current market inventory is relatively low, and the merchants have little pressure on shipments. In addition, the steel mills are more willing to price, and the cost is supported to a certain extent. Therefore, the price drop may be limited. On the whole, the price of hot-rolled coil is expected to fall from a high level today.

Coke: On December 22, the domestic coke market was operating steadily and strongly, and steel mills continued to accept the tenth round of increases. In terms of supply, the production capacity reduction policy in Shanxi, Hebei and Henan has been strictly promoted. At present, coking enterprises have started relatively stable operations, their sales are good, and coke inventories have mostly remained low. In terms of demand, steel mills are still active in starting blast furnaces, and there is still a high demand for coke. Individual steel mills consider the impact of rain and snow weather in the later period and have the intention to stock up and replenish the inventory, and they are more active in purchasing coke. At present, the coke supply and demand are both booming, and the coke market is expected to operate steadily and strongly in the short term.