Last weekend Tangshan steel market again fell sharply, Tangshan steel prices fell below the previous low, in addition to the impact of the news surface, strip fundamentals performance?

1. The price falls below 4,000. In early July, Tangshan steel strip price fell to a low of 4100 yuan/ton. After a few days of shock adjustment, the weekend again triggered a sharp decline, and the price fell below the previous low. On July 11, Tangshan steel strip benchmark price of 3940 yuan/ton. The sharp drop in prices triggered market panic, merchants unstable mentality, cautious operation. Other markets have made up for the fall, Tianjin Daqiuzhuang strip factory price fell to 4,130 yuan/ton, Le from 4,200 yuan/ton, East China market price fell to 4,110-4,150 yuan/ton, all hit the low point in the year.

2, supply low recovery. In July, the regional production limit plan of long process steel enterprises increased, the operation rate of short process remained low, and the overall crude steel output remained low. Conduction to steel varieties has little effect on strip steel, and the supply of strip steel is adjusted low. The latest statistical survey shows that the national number of strip operating rate 58.51%, the national daily output of 192200 tons of strip, Tangshan, Tianjin, Shanxi there are strip rolling line production resumption.

3, demand low season. Under the influence of traditional off-season, the order receiving situation of downstream galvanized strip enterprises is not good. The latest statistics show that the order receiving amount of galvanized strip in North China sample enterprises is 246,000 tons, and the stock of raw strip steel is 307,500 tons, which are in the general level of the year. Because of the inverted galvanized belt enterprise production or production has increased, the amount of orders reduced. The operating rate of welded pipe sample enterprises in China was 59.77%, and the construction of welding pipe factories in Tianjin increased slightly. Strip prices accelerated decline, downstream cautious wait and see, the national sample pipe enterprises strip inventory of 636,000 tons, replenishment rhythm slowed.

4. Inventory high decline. The high inventory of the national strip society decreased slightly. The latest statistical survey shows that the national strip social inventory 832,600 tons, including Tangshan strip social inventory 632,500 tons. The warehouse inventory is mainly based on current resources. In July, the merchants actively reduced the inventory and took the initiative to export the inventory. Tangshan social inventory has decreased about 190,000 tons compared with the high point of the year. Although the recent decline is obvious, but compared with the same period last year inventory is still more than 300,000 tons.

5. Continuous loss of strip steel. At present, the cost of strip steel for mainstream steel enterprises in Tianjin and Hebei region is 4211 to 4435 yuan/ton, and the loss of strip steel is 271 to 495 yuan/ton. Upstream raw fuel decline less than steel varieties, coke a new round of 200 yuan/ton after the decline signs of stabilization. The ore price shock falls, the decline is limited.

6, the coil spread narrowed. Steel varieties in the plate class drop range is higher than other varieties, large output, large inventory, demand difference restriction coil plate price, coil with reduced price.

7. The peripheral market is bad. Under the influence of the external news, the market sentiment is depressed, the United States interest rate is expected to be stronger, the steel market is more negative. Domestic “epidemic” spread, superimposed market off-season, business demand is expected to be pessimistic. It is expected that the price of steel strip in the short term or continue to be weak adjustment.