Great diving! When steel futures fell below 3600, when steel prices stopped falling.

On June 29, domestic steel market prices fell slightly, and Tangshan billet prices dropped 20 yuan to 3,300 yuan/ton. The black futures market fell sharply, the market mentality weakened, merchants mainly cut prices and shipped, but the transaction performance was weak. Iron ore and coke futures fell sharply by more than 3%, while the main closing price of rebar futures fell 3,754% by 3552.

On the 29th, the prices of black commodity futures fell across the board. In the morning, the domestic steel prices continued to fall, and the price declines in some regions expanded. From the point of view of transactions, due to the continuous rain weather in many places in the south, and the spot price resonance fell in the period, the trading atmosphere in the steel market was relatively deserted, and downstream procurement demand also weakened. Most steel merchants reported that the overall transaction was weak today. In terms of inventory, stocks in the steel market in most regions are beginning to accumulate, leading to the spread of bearish sentiment in the steel market. At present, the prices of iron ore and coke are facing a callback, and the cost support role is weakened. At the same time, the contradiction between supply and demand in the steel market is beginning to appear.

During the domestic holiday during the Dragon Boat Festival, overseas stock market futures generally fell. The Dow Jones Industrial Average fell 4.36% on three days; the S&P 500 fell 3.9%; the Nasdaq fell 3.69%, and US crude oil and ICE cloth fell 5.47% and 4.89% respectively. On the first trading day after the holiday, the plunge of black futures led to the further weakening of steel spot transactions, and steel trade merchants followed the downward adjustment.

Tangshan recently released the relevant draft of the "Tangshan City July Air Quality Enhancement Guarantee Program", from 0:00 on July 1, 2020 to 24:00 on July 31, the emission reduction of the steel industry is mainly targeted at C-level enterprises with performance evaluation, by region Emissions are reduced by impact, but implementation intensity and subsequent effects remain to be seen. The current boost to market confidence is relatively limited.

On the 29th, the spot stock of steel was affected by the plunge in futures. Some merchants followed the downward adjustment of 10-40 yuan, and the steel market was not motivated to purchase. The pressure of weakening demand in the off-season is even more pronounced. The continued heavy rainfall in the south has caused disasters in 13 provinces and cities, and the tightening of Beijing's epidemic prevention and control has caused concerns about the slowdown of construction progress. Although Tangshan's production restriction plan has been announced in July, the boost to the steel market is relatively limited, and the weak supply and demand pattern continues. There is still short-term support at the raw material end. Steel prices are expected to remain stable and weak on the 30th, with a limited decline.