01
The market for cold-rolled and hot-rolled coil plates is unlikely to see significant improvement in the short term
Since the beginning of October, the domestic market for cold-rolled and hot-Rolled Coil has shown no significant improvement, with sluggish transactions and weak demand. The prices of cold-rolled and hot-rolled coil have been fluctuating, and steel traders generally hold a cautious attitude towards the future market. Recently, the prices of cold-rolled and hot-rolled coil plates may mainly consolidate, and there is no exclusion of the possibility of a decline with fluctuations.
From October 9th to October 15th, the price of hot-rolled Q235B in the Shanghai area dropped by 110 yuan per ton, the price of hot-rolled SPHC dropped by 50 yuan per ton, and the price of cold-rolled coil fell by 60 yuan per ton. Overall, the market demand for sheet materials is average, and the inventory has slightly increased. Judging from the trading situation, steel traders generally feel that since the "Silver October", the cold-rolled and hot-rolled coil markets have still not shown the peak season scene, and the weak demand situation has not improved. Apart from essential needs, the purchasing intention of end users is not strong, and most of them are in a wait-and-see state.
In terms of the market trend of cold-rolled and hot-rolled coil in the later period, considering the current fundamental situation of strong supply and weak demand, the cold-rolled and hot-rolled coil market is unlikely to see significant improvement in the short term.
From the perspective of demand, recently, the production and sales volumes of the automotive and home appliance manufacturing industries, which consume a large amount of cold and hot-rolled coil sheets, have declined. Data from the China Passenger Car Market Information Association shows that from October 1st to October 12th, the national passenger car market retail volume reached 686,000 units, a year-on-year decrease of 8%. The retail volume of new energy passenger vehicles across the country reached 367,000 units, a year-on-year decrease of 1%. In terms of home appliances, the production scheduling data for November shows that 17.14 million units of household air conditioners were scheduled for production in China in November, a year-on-year decrease of 1.5%. The production of refrigerators was scheduled to reach 3.76 million units, a year-on-year decrease of 5.8%. The production of washing machines was 3.65 million units, a year-on-year decrease of 3.9%.
According to statistics from industry institutions, during this year's National Day holiday, the retail sales of refrigerators, washing machines and air conditioners in China reached 2.16 million units, 2.86 million units and 2.62 million units respectively, down by 27.1%, 18.4% and 24.8% year-on-year. Retail sales were 9.1 billion yuan, 8.2 billion yuan and 9.3 billion yuan respectively, down by 32.6%, 23.3% and 32.1% year-on-year. The export market also faces challenges. The export production of household air conditioners in November decreased by 9.1% compared with the actual export performance of the same period last year. Recently, the demand for cold-rolled and hot-rolled coil in the automotive and home appliance manufacturing industries has weakened, and the driving force for the price increase of cold-rolled and hot-rolled coil is insufficient.
From the supply side, recently, the production enthusiasm of steel enterprises remains high, and the output remains consistently high. Data from the China Iron and Steel Association shows that in the first ten days of October, key steel enterprises under statistics produced a total of 20.32 million tons of crude steel, with an average daily output of 2.032 million tons, representing a month-on-month increase of 7.5%. The key steel enterprises under statistics have cumulatively produced 18.75 million tons of pig iron, with an average daily output of 1.875 million tons, representing a 3.2% increase compared to the previous ten days. The key steel enterprises under statistics produced a total of 19.61 million tons of steel, with an average daily output of 1.961 million tons, a decrease of 8.5% compared with the previous ten days.
During the same period, the steel inventory of key statistical steel enterprises reached 15.88 million tons, an increase of 1.21 million tons compared with the previous ten days, representing a growth rate of 8.2%. It increased by 3.51 million tons compared with the beginning of this year, with a growth rate of 28.4%. It increased by 60,000 tons compared with the first ten days of September, with a growth rate of 0.6%. It increased by 1.15 million tons compared with the same period last year, with a growth rate of 7.8%. The output and inventory of steel enterprises have both increased, which will lead to an increase in the resources put on the market in the later period.
Some insiders said that the current output of hot-Rolled Sheet and strip products of steel enterprises has not decreased significantly. Judging from the estimated output in November, the planned maintenance volume of steel enterprises in November has not increased significantly compared with that in October. The reduction in supply is more due to the transformation and upgrading of production lines and temporary maintenance. It is expected that the output of steel plates of steel enterprises will remain at a high level in the short term. This, in turn, led to a continued pattern of strong supply in the steel market.
Overall, the main pressure currently faced by the domestic cold and hot-rolled coil market lies in the mismatch between supply and demand, with high supply and weak demand. This ultimately leads to an increase in steel inventories, making steel prices more likely to fall than rise.
Since the beginning of October, the domestic market for cold-rolled and hot-Rolled Coil has shown no significant improvement, with sluggish transactions and weak demand. The prices of cold-rolled and hot-rolled coil have been fluctuating, and steel traders generally hold a cautious attitude towards the future market. Recently, the prices of cold-rolled and hot-rolled coil plates may mainly consolidate, and there is no exclusion of the possibility of a decline with fluctuations.
From October 9th to October 15th, the price of hot-rolled Q235B in the Shanghai area dropped by 110 yuan per ton, the price of hot-rolled SPHC dropped by 50 yuan per ton, and the price of cold-rolled coil fell by 60 yuan per ton. Overall, the market demand for sheet materials is average, and the inventory has slightly increased. Judging from the trading situation, steel traders generally feel that since the "Silver October", the cold-rolled and hot-rolled coil markets have still not shown the peak season scene, and the weak demand situation has not improved. Apart from essential needs, the purchasing intention of end users is not strong, and most of them are in a wait-and-see state.
In terms of the market trend of cold-rolled and hot-rolled coil in the later period, considering the current fundamental situation of strong supply and weak demand, the cold-rolled and hot-rolled coil market is unlikely to see significant improvement in the short term.
From the perspective of demand, recently, the production and sales volumes of the automotive and home appliance manufacturing industries, which consume a large amount of cold and hot-rolled coil sheets, have declined. Data from the China Passenger Car Market Information Association shows that from October 1st to October 12th, the national passenger car market retail volume reached 686,000 units, a year-on-year decrease of 8%. The retail volume of new energy passenger vehicles across the country reached 367,000 units, a year-on-year decrease of 1%. In terms of home appliances, the production scheduling data for November shows that 17.14 million units of household air conditioners were scheduled for production in China in November, a year-on-year decrease of 1.5%. The production of refrigerators was scheduled to reach 3.76 million units, a year-on-year decrease of 5.8%. The production of washing machines was 3.65 million units, a year-on-year decrease of 3.9%.
According to statistics from industry institutions, during this year's National Day holiday, the retail sales of refrigerators, washing machines and air conditioners in China reached 2.16 million units, 2.86 million units and 2.62 million units respectively, down by 27.1%, 18.4% and 24.8% year-on-year. Retail sales were 9.1 billion yuan, 8.2 billion yuan and 9.3 billion yuan respectively, down by 32.6%, 23.3% and 32.1% year-on-year. The export market also faces challenges. The export production of household air conditioners in November decreased by 9.1% compared with the actual export performance of the same period last year. Recently, the demand for cold-rolled and hot-rolled coil in the automotive and home appliance manufacturing industries has weakened, and the driving force for the price increase of cold-rolled and hot-rolled coil is insufficient.
From the supply side, recently, the production enthusiasm of steel enterprises remains high, and the output remains consistently high. Data from the China Iron and Steel Association shows that in the first ten days of October, key steel enterprises under statistics produced a total of 20.32 million tons of crude steel, with an average daily output of 2.032 million tons, representing a month-on-month increase of 7.5%. The key steel enterprises under statistics have cumulatively produced 18.75 million tons of pig iron, with an average daily output of 1.875 million tons, representing a 3.2% increase compared to the previous ten days. The key steel enterprises under statistics produced a total of 19.61 million tons of steel, with an average daily output of 1.961 million tons, a decrease of 8.5% compared with the previous ten days.
During the same period, the steel inventory of key statistical steel enterprises reached 15.88 million tons, an increase of 1.21 million tons compared with the previous ten days, representing a growth rate of 8.2%. It increased by 3.51 million tons compared with the beginning of this year, with a growth rate of 28.4%. It increased by 60,000 tons compared with the first ten days of September, with a growth rate of 0.6%. It increased by 1.15 million tons compared with the same period last year, with a growth rate of 7.8%. The output and inventory of steel enterprises have both increased, which will lead to an increase in the resources put on the market in the later period.
Some insiders said that the current output of hot-Rolled Sheet and strip products of steel enterprises has not decreased significantly. Judging from the estimated output in November, the planned maintenance volume of steel enterprises in November has not increased significantly compared with that in October. The reduction in supply is more due to the transformation and upgrading of production lines and temporary maintenance. It is expected that the output of steel plates of steel enterprises will remain at a high level in the short term. This, in turn, led to a continued pattern of strong supply in the steel market.
Overall, the main pressure currently faced by the domestic cold and hot-rolled coil market lies in the mismatch between supply and demand, with high supply and weak demand. This ultimately leads to an increase in steel inventories, making steel prices more likely to fall than rise.
From October 9th to October 15th, the price of hot-rolled Q235B in the Shanghai area dropped by 110 yuan per ton, the price of hot-rolled SPHC dropped by 50 yuan per ton, and the price of cold-rolled coil fell by 60 yuan per ton. Overall, the market demand for sheet materials is average, and the inventory has slightly increased. Judging from the trading situation, steel traders generally feel that since the "Silver October", the cold-rolled and hot-rolled coil markets have still not shown the peak season scene, and the weak demand situation has not improved. Apart from essential needs, the purchasing intention of end users is not strong, and most of them are in a wait-and-see state.
In terms of the market trend of cold-rolled and hot-rolled coil in the later period, considering the current fundamental situation of strong supply and weak demand, the cold-rolled and hot-rolled coil market is unlikely to see significant improvement in the short term.
From the perspective of demand, recently, the production and sales volumes of the automotive and home appliance manufacturing industries, which consume a large amount of cold and hot-rolled coil sheets, have declined. Data from the China Passenger Car Market Information Association shows that from October 1st to October 12th, the national passenger car market retail volume reached 686,000 units, a year-on-year decrease of 8%. The retail volume of new energy passenger vehicles across the country reached 367,000 units, a year-on-year decrease of 1%. In terms of home appliances, the production scheduling data for November shows that 17.14 million units of household air conditioners were scheduled for production in China in November, a year-on-year decrease of 1.5%. The production of refrigerators was scheduled to reach 3.76 million units, a year-on-year decrease of 5.8%. The production of washing machines was 3.65 million units, a year-on-year decrease of 3.9%.
According to statistics from industry institutions, during this year's National Day holiday, the retail sales of refrigerators, washing machines and air conditioners in China reached 2.16 million units, 2.86 million units and 2.62 million units respectively, down by 27.1%, 18.4% and 24.8% year-on-year. Retail sales were 9.1 billion yuan, 8.2 billion yuan and 9.3 billion yuan respectively, down by 32.6%, 23.3% and 32.1% year-on-year. The export market also faces challenges. The export production of household air conditioners in November decreased by 9.1% compared with the actual export performance of the same period last year. Recently, the demand for cold-rolled and hot-rolled coil in the automotive and home appliance manufacturing industries has weakened, and the driving force for the price increase of cold-rolled and hot-rolled coil is insufficient.
From the supply side, recently, the production enthusiasm of steel enterprises remains high, and the output remains consistently high. Data from the China Iron and Steel Association shows that in the first ten days of October, key steel enterprises under statistics produced a total of 20.32 million tons of crude steel, with an average daily output of 2.032 million tons, representing a month-on-month increase of 7.5%. The key steel enterprises under statistics have cumulatively produced 18.75 million tons of pig iron, with an average daily output of 1.875 million tons, representing a 3.2% increase compared to the previous ten days. The key steel enterprises under statistics produced a total of 19.61 million tons of steel, with an average daily output of 1.961 million tons, a decrease of 8.5% compared with the previous ten days.
During the same period, the steel inventory of key statistical steel enterprises reached 15.88 million tons, an increase of 1.21 million tons compared with the previous ten days, representing a growth rate of 8.2%. It increased by 3.51 million tons compared with the beginning of this year, with a growth rate of 28.4%. It increased by 60,000 tons compared with the first ten days of September, with a growth rate of 0.6%. It increased by 1.15 million tons compared with the same period last year, with a growth rate of 7.8%. The output and inventory of steel enterprises have both increased, which will lead to an increase in the resources put on the market in the later period.
Some insiders said that the current output of hot-Rolled Sheet and strip products of steel enterprises has not decreased significantly. Judging from the estimated output in November, the planned maintenance volume of steel enterprises in November has not increased significantly compared with that in October. The reduction in supply is more due to the transformation and upgrading of production lines and temporary maintenance. It is expected that the output of steel plates of steel enterprises will remain at a high level in the short term. This, in turn, led to a continued pattern of strong supply in the steel market.
Overall, the main pressure currently faced by the domestic cold and hot-rolled coil market lies in the mismatch between supply and demand, with high supply and weak demand. This ultimately leads to an increase in steel inventories, making steel prices more likely to fall than rise.
