September steel structure and steel market prices bullish

From the previous week's domestic steel stock situation and the upcoming peak season effect, many insiders are bullish on the trend of steel prices in September, especially long products.

Earlier, due to the decline in earnings of steel companies in July, the China Iron and Steel Association bluntly said that it is not optimistic about the profitability of the steel industry in the third quarter.

According to Steel Structure Network, on August 27, the national steel stocks were 15.358 million tons, a decrease of 158,900 tons from the previous week. From the point of view of the sub-variety: the country's wire rod social inventory is 1,244,400 tons, down 4.43% from last week; rebar, social inventory is 5.464 million tons, down 1.29% from last week; hot rolled coil social inventory is 5,474,400 Tons, a decrease of 0.81% from last week; cold-rolled coils, social inventories of 1,409,200 tons, an increase of 1.34% over the previous week.

Changes in inventory directly affect the trend of different varieties of steel prices. On August 26, Shougang upgraded its high-line order price for September by 80 yuan/ton, and rebar increased by 70 yuan/ton. In addition, 14 steel companies intensively raised the quotation for rebar and wire rod products on August 31st and September 1st.

On the other hand, the variety of plates, Baotou Iron and Steel on August 30 will be hot-rolled products down 220 yuan / ton, cold-rolled down 180 yuan / ton, chilling down 220 yuan / ton, galvanized down 100 yuan / ton, profile cut 250 yuan / ton , Strip down 100 yuan / ton.

The traditional peak season of the construction industry will start formally in September. In addition, the power restriction in some areas will mainly affect small and medium-sized steel mills. Under the dual role, it will inevitably have a greater effect on the price of steel structural long products, plus the price level of steel products in the previous period. Not high, steel cost support plays a significant role. In contrast, the variety of sheet metal is limited by inventory pressure and its own gross profit rate. The price trend in September may be weaker than long products.

Perhaps it is in this expected role, yesterday, the two sectors of the industry sector, only steel and financial services rose to close the two major plates, the steel plate rose by 0.93% in a single day, ranking first in the industry sector gains. The higher ratio of long products, Sangang Dawning (002110) is based on a daily limit. Therefore, the price of steel in September is promising.