Supply and demand weak balance adjustment to strengthen the adjustment

Yesterday, Chinese steel net market monitoring showed that the average price of the national 6.5mm high line was 3524 yuan/ton, up 12 yuan/ton from the previous trading day, and the average price of 20mm secondary rebar was 3541 yuan/ton, up from the previous trading day. 11 yuan / ton, 20mm three rebar average price of 3548 yuan / ton, compared with the previous trading day by 14 yuan / ton. Average price of 8mm Puzhong board is 3753 yuan/ton, which is 5 yuan/ton higher than last trading day, average price of 20mm Puzhong board is 3483 yuan/ton, 4 yuan/ton higher than last trading day, 20mm low alloy board The average price was 3,657 yuan/ton, an increase of 3 yuan/ton over the previous trading day. The average price of 3.0mm hot coils was 3,615 yuan/ton, up 8 yuan/ton from the previous trading day, and the average price of 4.75mm hot coils was reported at 3,537 yuan/ton, up by 9 yuan/ton from the previous trading day.

In terms of the market, the market continued to be stronger and stronger yesterday. Driven by the pull-up of steel and raw materials, the spot price has stabilized and consolidated. The current market demand is slightly released. A large number of infrastructure construction projects in various regions have started intensively and have formed favorable factors for the market. However, on the other hand, the market demand in the north has shrunk sharply, and Northland will have a greater impact on the market, and its price advantage will inevitably bring more severe competitive pressure on the market. In the short-term, the price of inertia will increase in response to the weak balance between supply and demand.

In terms of cost, the price of billet in Tangshan rose by RMB 10/t yesterday. Opened this morning, the current local ex-factory price of 150 billets of carbon is 3030 yuan/ton. At present, Tangshan's finished materials continue to rise, and transactions are fair. Downstream has increased the purchase of blanks, market sentiment has improved, and the enthusiasm of businesses has been improved. It is expected that the market for steel billets in Tangshan will become stronger and stronger, and it is also necessary to pay attention to tendering of Yansteel's billet today.

In the news, the Customs Information Network of the Customs Information Center of the People's Republic of China has released the “Summary of the Economic Situation in the First Three Quarters of 2013 and the Analysis Report on China’s Import and Export Trade Situation (Autumn Report)” recently, including the import and export trade of the first three quarters of 2013 in China. The inventory of macroeconomic operations was conducted and the main characteristics of the import and export trade structure were analyzed. The report pointed out that the growth rate of 7.7% of China's foreign trade in the first three quarters of this year showed a "V"-shaped trend, which was driven by the appreciation of international currency and the economic slowdown in emerging markets. In September, the growth rate of China's exports fell again and fell. Considering the domestic and international environment comprehensively, the report estimates that China's import and export growth rate will be about 7.8% this year, and the total value of imports and exports will reach 4.1 trillion to 4.2 trillion US dollars.

Overall, the overall market price continued to rise yesterday. At present, inventory is low, and cost support is more obvious. Coupled with higher raw material prices, it is expected that there will still be some room for further price increases.