Futures steel price continues to weaken, will the A387 Gr 5 steel price continue rising

On October 29th night, the main contract of steel shocks rebounded. Billets fell one after another, hot rolled steel coil and A387 Gr 5 steel etc. plate prices fell, while building materials prices continued to rise. The spot trend showed differentiation characteristics.

According to market information, Shagang and Yonggang have announced their production restriction schemes in November. Among them, Shagang plans three 480 cubic meter blast furnaces and two 580 cubic meter blast furnaces to stop production from Nov. 1 to Nov. 15, which is expected to affect hot metal production by 110,000 tons.

Yonggang's production restriction plan is as follows: from November 1 to November 30, three 500 cubic meters blast furnaces are planned to shut down; from November 1 to November 18, 1,1080 blast furnaces are shut down; it is estimated that the hot metal output will be affected by 180,000 tons.

As night market futures continue to be weak, it continue to restrict billet, building materials’ prices rise. But on the other hand, because building materials supply is tight, shipment is faster, inventory has dropped sharply, steel factory price psychology is strong. It is expected that steel prices will continue to show a trend of differentiation today, and building materials will rise slightly, and A387 Gr 5 steel etc. plates will continue to weaken.