Scrap Market Watch
Yesterday's thread main futures fell 82 to close at 4825, down 1.67%; the main hot coil fell 102 to close at 5180, down 1.93%; the main iron ore rose 11.5 to close at 688.5, up 1.7%; the main coking coal fell 15.5 to close at 2970.5, down 0.52%; the main coke rose 111 to close at 3741, up 3.06%. Affected by the tightening of market supervision, the overall price of black commodities fell yesterday, and the entire steel market was filled with panic.
Message surface:
1. Ministry of Industry and Information Technology: Resolutely implement capacity replacement policies such as steel, and the tight supply and demand of energy will improve, which is the beginning of policy intervention in the market.
2. The National Development and Reform Commission studied the implementation of intervention measures for coal prices in accordance with the law, which is a policy to increase the pressure on the market, and then the price of coking coal and thermal coal fell sharply.
3. National Energy Group: The coal industry should ensure that the self-produced coal in the fourth quarter will increase production in an orderly manner and produce high yields, and the policy will increase supply to alleviate the tight supply and demand situation in the market. Further negative coal prices.
4. The state has made a heavy fist to curb the irrational rise in coal prices. From the above policy aspects, we can see that the government's determination to suppress the market in the short term is firm, in order to alleviate the contradiction between supply and demand, increase the production of coal, in the short term, coal continues to be weakly adjusted.
On the whole, the snail and the finished product are still weak operation, and it is difficult to support the price of scrap. At present, the panic mentality of the scrap market is gradually rising, the expectation of the future market is still not optimistic, the supplier shipment is more active, most of them still have plans to reduce inventory, reduce the risk of accumulation, and the overall arrival of steel mills is acceptable. Due to the uncertainty of power curtailment and production limitation in some areas, the price of steel enterprises with limited production is obvious, and due to the impact of power curtailment, the market lacks high-quality scrap resources. At present, although the decline in finished products has slowed down, steel mills are still cautious in purchasing scrap steel, and the price is adjusted according to the inventory situation. It is expected that the scrap market will be stable and weak in the short term.
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