【EAF Steel】Disturbance in overseas financial markets, increasing wait-and-see mentality in steel demand

This week, China's steel market rose and then fell, in the first half week, some markets' steel prices increased by more than 100 yuan, but downstream users' wait-and-see sentiment increased, and market trading volume was average. After the second half week, influenced by the disturbance of overseas financial markets, futures rebar prices jumped and fell, dragging spot prices lower. High power graphite electrodes for electric furnace steelmaking for your reference. As of March 16, China's rebar average price was 4,289 yuan, down 27 yuan from last Friday.

In terms of raw materials, scrap steel market also showed a “high opening and low growth” trend this week. At the beginning of the week, the leading steel plants raised prices, leading to a significant increase in the arrival volume. In the second half of the week, the sharp decline in steel prices increased market panic, and the phenomenon of "selling goods by lowering prices" increased. Scrap steel (electric furnace materials) average purchase price was reduced by 16 yuan to 2854 yuan (without invoices) compared to last week.

Compared with the increase of steel prices, scrap price increase in the early stage is relatively low. Therefore, this week, the profits of electric arc furnace steel plants continued to rise slightly, and Some electric arc furnaces in Jiangsu, Henan and Southwest China have resumed production. According to statistics, this week the utilization rate of electric furnace steel production capacity in China's 135 steel plants was 53.75%, an increase of 2.74% compared to last week, and  electric furnace steel output was 301700 tons/day. Although recent data such as social finance and real estate have improved, the current inventory pressure in the construction steel market is still high, with significant wait-and-see sentiment in the downstream. Some markets are still in a state of inventory accumulation, and traders are also generally cautious about the future market.

China's construction steel market is expected to remain volatile and weak in the short term, and the rebound in electric furnace steel profits and production will slow down. Learn more about steel future market trend, contact us.