The steel raw material market is still weak

On August 21, the domestic spot market for steel raw materials continued to operate weakly, and individual varieties accelerated to fall. Among them, the spot market for imported iron ore continues to fall, local spot prices for domestic refined iron ore fines have bottomed out, the billet market has been steadily falling, the coke market has remained weak, and the shipping market has continued to decline.

Specifically, it appears that the imported iron ore market continues to be weak in the countryside, and individual varieties have accelerated decline. Among them, the external disk market continues to be in a downward trend, and the amount of tenders for mines has been reduced. The ** market has fewer offers, prices continue to decline, and market transactions are more difficult. The price of the domestic port spot market has also continued to decline, and the market has once again entered a wait-and-see phase.

In domestic mines, the domestic iron concentrate market continued to decline in some parts of the country today, and individual markets fell more significantly. Among them, Hebei and Liaoning continued to decline in some areas, a drop of 5-10 yuan / ton. Recently, many steel mills have relied on the pressure on iron powder, not only continuing to lower the purchase price of iron powder, but also the purchase volume is extremely limited. At present, the iron powder market bottoms out again and again, the pessimistic attitude of the business is further aggravated, and the market transactions are limited.

Today's domestic steel billet market has remained stable, with a few markets stabilizing. Market prices in Jiangsu, Guangzhou, Fujian, Zibo, Tianjin, Shanxi, and Yunnan have dropped by a certain extent, ranging from RMB 10-50/tonne. Today, the price of billets in Tangshan was further explored. The price of billet in Tangshan fell by RMB 20/t in the afternoon, and the market’s pessimistic attitude was obviously intensified. Industry insiders have predicted that this fall may lead to a new round of decline in the steel market.

Today's domestic coke spot market remains weak and stable, and port prices and steel mill purchase prices continue to stabilize. Among them, the prices of coke in some markets in the northeast and east China were weak, but the decline was not significant. Affected by the plunge in steel, steel billet, iron ore and other markets, the mentality of the coke market business pessimistic and continuation, traders purchase more cautious, weak market transactions.

Today's scrap market is vulnerable to the countryside, and some market prices have dropped slightly. Among them, markets such as Jiangyin, Tianjin, Harbin, Dalian, and Liaoyang have dropped slightly, dropping by RMB 20-50/t. Affected by the downturn in the steel market, scrap purchase prices of steel mills have been further lowered, making market players less optimistic about the market outlook, and shipping is more difficult. The pressure on the stock market is relatively high, and market transactions are relatively light. Among other varieties of raw materials, the steelmaking pig iron market continued its weak steady state, and the market transactions continued to be light.

In terms of shipping, the shipping market continued to decline on the 20th, of which, Brazil-China shipping cost was US$17.218/ton, which fell by US$0.020/ton (15-18 million tons), with a slight contraction; Western Australia to China’s sea freight was US$6.575 / Ton, down $ 0.008/ton (15-18 million tons), the decline continued to shrink. At the same time, due to the continued decline in freight rates for Capesize vessels, the BDI index continued to fall on the 20th, falling 3 points, or 0.42%, and the decline continued to contract from the previous day.

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