Price trend
As of the afternoon of the 21st, the average market price of hot coils was 4,932 RMB/ton, down 0.80% from the previous day.
Analysis review
On the 21st, the hot rolled coil futures price changed and went down, and the price of the hot rolled coil domestic market generally fell.
In terms of upstream raw materials, the coke spot market has been in a deadlock. Iron ore and steel billet have recently increased. Although cost support still exists, the strength has weakened. With continuous digestion, hot coil prices have returned to demand-oriented.
Judging from the actual market performance, steel mills have been willing to keep prices for several consecutive days in the early stage, but the downstream orders have not followed up enough. Production restrictions are frequent in the north, and the start of work is sluggish; in the south due to the impact of the epidemic, demand is sluggish, merchants are not very motivated in actual operations, and their attitudes are cautious. In addition, on the 21st, hot rolled coil futures fell, the market’s wait-and-see sentiment increased, and merchants’willingness to cash out shipments increased.
Market outlook
On the whole, in the short term, the hot rolled coil has limited ups and downs and has entered a shock adjustment stage as a whole. It is necessary to continue to pay attention to the impact of market sentiment on price fluctuations.
