Ore prices remain strong and look forward to steel season

This week saw a slight increase in steel prices, and the ore prices remained strong, with the gross margin of most varieties rising.

As the season is approaching, traders are still cautious. This week, Wuhan Iron and Steel Corporation and Anshan Iron & Steel have also issued price policies after Baosteel. They also maintained a slight upward adjustment tone and strengthened our previous judgments on the stability of the bottom of sheet metal. Relatively speaking, long-material traders are getting goods due to capital shortages and other reasons. Still cautious, but the market is generally concerned about the season effect.

Investment Tip: At present, we still recommend companies that are concerned about the improvement of sheet fundamentals, such as Baosteel Co., Ltd. (low valuation, industry leader), and Valin Steel (big performance elasticity). We also recommend that this week be concerned with the drainage design specifications issued by the Ministry of Housing and Urban-Rural Development. Good new cast pipe (spheroidal pipe caster).

Profits continued to rebound, and the volume of hot rolled coils dropped this week. The weighted profits of threads, highs, hot rolled coils, cold plates, and medium plates changed by 16,21,-43,12,6 yuan to 368,346,16,153,47 respectively. Yuan / ton.

Steel prices rose slightly overall and hot rolled volumes fell slightly

This week, the weighted price of steel products rose 0.3% from last week to 5010 yuan/ton. The prices of thread, high line, cold plate, and medium plate rose by 0.5%, 0.6%, 0.4%, and 0.2% to 4998, 5105, 5481, and 4912 yuan per ton respectively, and the prices of hot coils dropped by 0.9% to 4,829 yuan per ton. Seamless pipe prices remained at 5,750 yuan/ton, and welded pipe prices rose 0.4% to 4,870 yuan/ton. Non-oriented silicon steel prices rose 0.3% to 6,550 yuan / ton, orientated silicon steel prices remained at 19,000 yuan / ton. The price of 300-series hot-rolled stainless steel was maintained at 22,900 yuan/ton, and that of the 400 series was maintained at 9300 yuan/ton.

Steel prices in Europe and America remain stable

This week, the U.S., the European Union, and the Southeast Asia changed by -1.5%, 1.9%, and 0% to US$706, 754, and 720 respectively. This week, the cold rolling in the United States, the European Union, and Southeast Asia changed by 0%, 1.6%, and 2.6% respectively to US$860, 896, and 780 US dollars/ton. This week, the U.S., EU, and Southeast Asia have changed their galvanizing rates to 0%, 0%, and 1.3% to 904, 911, and 800 U.S. dollars per ton, respectively. This week, the U.S., EU, and Southeast Asia plate prices remained unchanged at 1,103,904,730 U.S. dollars per ton. This week, the United States, the European Union, and Southeast Asia remain unchanged at 821,783,730 U.S. dollars per ton.

Freight boosts long iron ore price and ferrosilicon slightly falls

Domestic spot iron ore price remained at 1246 yuan/ton this week, imported spot iron ore price remained at 1340 yuan/ton, Brazil's long co-orice price rose 1.4% to 1,218 yuan/ton, Australia's long co-ore price rose 0.5% To 1067 yuan / ton. The price of coke was maintained at 2,080 yuan/ton, and the price of main coking coal was maintained at 1,500 yuan/ton. Scrap prices remained at 3300 yuan/ton, and ferrosilicon prices fell 1.5% to 6,750 yuan/ton.

Steel, iron ore stocks fell slightly

Total steel inventories fell by 0.4% this week to 13.73 million tons, while major port iron ore stocks fell by 0.5% to 88.53 million tons. Among them, thread, high-wire, hot-rolled, cold-rolled, and mid-plate stocks changed -0.4%, -3.8%, -0.4%, 0.2%, and 0.9% to 533, 100, 431, 161, and 1.49 million tons respectively.