After the National day holiday, steel market transaction narrowed, scrap steel price fell, and EAF loss decreased

After stocking up before the National Day, this week China's domestic construction steel trading volume declined, end user procurement is not active. Lacking confidence in the market, some companies voluntarily cut prices to keep shipping. As of Oct 14, the average price of rebar in China was 4,046 yuan, down 37 yuan from before the National Day. Some steel warehouses were affected by the epidemic and trading was suspended. Our factory has 16 years of independent production experience in graphite electrode, specializing in power supply for EAF/LF steel smelting. 

China's scrap market continued to fall this week. Affected by the sharp price reduction of some leading steel plants, the upstream raw material enterprises actively shipped, and the arrival volume of some steel plants and bases increased significantly. The average purchase price of scrap steel in the steel plant was 2705 yuan/ton, a decrease of 49 yuan compared with that before the National Day.

Affected by this, EAF steel cost continued to decline this week, with a slight increase in profits. Some manufacturers (such as Jiangsu Province) gradually resumed production or planned to resume production during the holiday production period. The production capacity of some regions in Southwest China, Guangdong and Guangxi is still subject to the shortage of scrap steel and electricity prices. According to statistics, this week the utilization rate of EAF steel capacity of 135 steel plants in China was 39.19%, an increase of 1.63% over last week, and EAF steel output was 219,800 tons/day.

From the current performance of downstream steel, infrastructure demand continues to improve slowly, but the performance of real estate remains flat. Although some regions are urging the return of guaranteed delivery buildings, the actual situation shows that the labor service rate has not improved significantly, which makes it difficult for the overall market demand to continue to grow. China's steel market is expected to fluctuate slightly next week, EAF steel output will continue to rise slightly, the rising space will still be restrained by profits. For more information about the transaction in the steel market, welcome to contact us.