Steel market price on October 31, 2022

Construction steel: On October 31, the average price of 20mm Grade III anti-seismic deformed steel bars in 31 major cities nationwide was 3883 yuan/ton, down 61 yuan/ton from the previous trading day. In the short term, the current market is still in a weak balance between supply and demand. On the one hand, the output of deformed steel bars is at a high level in the year, and it is about to enter the slack season of demand. The market is worried that the continued high output may lead to accumulation risk; On the other hand, the negative feedback logic caused by the decline of raw materials is not over, and Chengcai still has the pressure to continue to adjust. At the same time, both downstream demand and speculative demand will weaken.

Hot rolled coils: On October 31, the average price of 4.75mm hot rolled coils in 24 major cities nationwide was 3761 yuan/ton, down 66 yuan/ton from the previous trading day. Market risk appetite declined, and the decline of black varieties continued to expand. Hot coil futures dropped to 3450 yuan/ton as low as possible, breaking a new low for more than two years, and dropping nearly 100 yuan from the closing price on Friday. At the end of the traditional demand peak season, the downstream demand for expediting is still there, but the overall growth is limited, and the funds are tight at the end of the month. The progress has improved significantly at the end of the month. The increase in terminal demand is limited, and the overall transaction continues to be sluggish, spreading bearish sentiment. At present, due to the expansion of the steel plant's loss area and the severe profit situation, the superimposed traders' intention to store in winter is not good. In the face of a strong expectation that the steel plant's increased loss in the later period will lead to an increase in production reduction, and the negative feedback decline of the finished material charge continues to intensify.

Cold rolled coil: On October 31, the average price of 1.0mm cold coil in 24 major cities nationwide was 4390 yuan/ton, down 36 yuan/ton from the previous trading day. It is understood that the current epidemic situation in Nanjing, especially in Qixia District, is relatively serious, with a large number of new people added every day. At present, it is still under closed control, while steel warehouses are basically located in Qixia District, and the warehouse is unable to access goods. Therefore, the market in Nanjing is basically at a standstill. In terms of mentality, futures continued to weaken, epidemic outbreaks occurred in many places, market demand was limited, and transactions continued to decline. Traders were generally pessimistic.

Medium and heavy plate: On October 31, the average price of 20mm plain plate in 24 major cities nationwide was 3984 yuan/ton, down 62 yuan/ton from the previous trading day. In terms of transaction, the transaction on the 31st was relatively poor, with merchants mainly competing for orders at low prices, leading to price confusion. On the supply side, the decline of spot goods has expanded, and the steel plant may turn from the edge of profit and loss to full loss. In the later period, there may be active maintenance and production reduction. In terms of demand, the traditional off-season is coming, and the further decline of raw material prices will cause the terminal procurement progress to continue to slow down, the cycle will be prolonged, and the demand will be difficult to improve in the short term.