company news about Steel prices are expected to remain weak after New Year’s Day and before the start of winter storage

Bureau of Statistics: The prices of some commodities have dropped significantly, and the manufacturing industry's prosperity level has rebounded for two consecutive months

In December, the manufacturing purchasing manager index and non-manufacturing business activity index were 50.3% and 52.7%, respectively, up 0.2 and 0.4 percentage points from the previous month; the composite PMI output index was 52.2%, the same as the previous month, the three major indexes All are in the expansion zone. It shows that my country's economy as a whole has maintained a recovery trend, and the level of prosperity has recovered steadily.

Analyst's point of view: The rebound in the manufacturing boom index is mainly due to the improvement in demand after the decline in raw material prices. The new order index is 49.7%, 0.3 percentage points higher than last month, and it has rebounded for two consecutive months. The steady development of the manufacturing industry is conducive to driving the demand for raw materials such as steel and steel prices in the short to medium term.

Maintain year-end liquidity! The central bank reproduced 100 billion operations and invested 530 billion in net investment this week

On December 31, according to the website of the central bank, in order to maintain stable liquidity at the end of the year, the People’s Bank of China launched a 100 billion yuan reverse repurchase operation on December 31, 2021 through an interest rate bidding method. Due to the expiration of 10 billion yuan of reverse repurchase today, a net investment of 90 billion yuan was realized. This week (December 27-December 31), the central bank's open market full-caliber net investment (including treasury cash) 530 billion yuan.

Analyst's point of view: Abundant market funds will help ensure the production needs of enterprises, boost enterprise development, increase raw material purchases, and benefit steel prices in the medium term.

Iron ore inventory released this week

On December 30, the iron ore inventory of 46 major ports across the country was 156.2 million tons, an increase of 400,000 tons from December 23, of which about 92.5 million tons of trade ore, 23 million tons of lump ore, and 4 million tons of pellets. , 11 million tons of refined powder. This week, the average daily port volume of 46 major ports across the country decreased by 40,000 tons to 2.76 million tons compared with last week; the average daily port volume of iron ore in the five major northern ports (Qingdao, Rizhao, Tianjin, Caofeidian, Jingtang) was compared with last week Reduced by 60,000 tons to 1.25 million tons, the average daily arrival volume was 1.35 million tons, an increase of 90,000 tons from last week.

Analyst's point of view: Iron ore has insufficient momentum after the rise in the middle of this month, mainly due to the poor steel demand in the market near the end of this month. In addition, the current steel price is still high. The willingness is not strong, and iron ore inventories are rising. It is expected that iron ore prices will remain weak next week, and support for steel prices will weaken.

Steel prices fell today

Seven of the 24 markets for rebar fell by 10-50, and the average price of 20mmHRB400E was 4,718 yuan/ton, down 8 yuan/ton from the previous trading day;

12 of the 24 hot coil markets fell 10-30, and the average price of 4.75 hot-rolled coils was 4770 yuan/ton, down 12 yuan/ton from the previous trading day;

Eight of the 23 markets for medium and heavy plates fell 10-20. The average price of 14-20mm common medium plates was 5072 yuan/ton, down 6 yuan/ton from the previous trading day.

Today, a total of 19 steel mills adjusted their prices, with an increase of 1 and a price adjustment of 20 yuan/ton, with the highest increase being Shandong Chuanyang Profiles; a decrease of 5 companies with a price adjustment of 20-50 yuan/ton, and the largest decline being the Shanxi Gaoyi Pan line; stable 13 Family.

Steel futures fell slightly today

Today's main threaded futures fell 5 to close at 4315, a decrease of 0.12%; the main hot coil fell 45, to close at 4411, a decrease of 1.01%; the main coking coal rose 34.5 to close at 2228.5, an increase of 1.57%; the main coke rose 19.5 to close at 2934, an increase of 0.67%; iron The main ore rose 6 to close at 680, an increase of 0.89%.

Steel price forecast for next week:

As the year is approaching, according to various economic data, the overall manufacturing industry is showing an upward trend under the national policy of ensuring supply and stabilizing prices. Moreover, it can be seen from the previous Central Economic Conference that the manufacturing industry, as an important direction of the country's development in 2022, will have more support policies introduced to promote the development of the manufacturing industry, and thus drive the demand for raw materials. Therefore, steel demand and prices in the first quarter may show an overall upward trend. However, due to the sharp rise in the price of raw materials in 2021, the price of steel is still at a high level, and the downstream procurement is not active, and many businesses have expressed that they will not do winter storage. Judging from the recent winter storage plans released by some steel mills, steel mills are gradually lowering prices to meet market expectations. Therefore, after New Year's Day and before the start of winter storage, prices are expected to remain weak.