August 2019 Steel Market Forecast

 On August 6, the domestic steel market was in a weak downward trend. Tangshan Pu square billet factory fell 20 to 3540. Today, black futures generally fell, market pessimism intensified, end users slowed down the pace of purchasing, some businesses due to the dual pressure of inventory and capital, offer low prices to reduce inventory and withdrawal funds, resulting in lower market prices.

  Today, domestic construction steel prices fell as a whole. The average price of rebar in major cities was 3934 yuan/ton, down 29 yuan/ton from the previous trading day. Mysteel rebar price index was 3888.87, down 17.49 from the previous trading day. Among them, the declines in eastern, central and northeastern China were larger, while those in southern and northwestern China were slightly slower. Specific to the market situation, today's finished goods market shocks and falls, spot market performance is not good throughout the day, traders in order to promote the transaction, more price drops, but the transaction has not improved significantly. Short-term market is characterized by high supply, high inventory and weak demand. Businessmen are more pessimistic about the future market. In operation, shipments are mostly used to reduce the risk of future market. It is expected that short-term domestic construction steel or weak adjustment will be the main factor.

Steel market forecast :

As profits of steel mills continue to shrink, some steel mills reduce production due to losses (mainly crude steel and pig iron), but the intensity is not very strong, especially the reduction of construction steel is limited. At the same time, due to the deterioration of the external environment, the futures market led the decline, and the pessimistic expectations of the whole market increased. Based on the psychology of buying up and not buying down, the volume of steel market further shrank in early August. In addition, shipments from overseas mines have gradually recovered, mining prices have fallen sharply in recent days, and steel cost support has weakened. Generally speaking, short-term negative factors dominate, steel prices continue to adjust weakly, and steel mills are expected to take the initiative to increase the intensity of production reduction.