China hot rolled steel market price forecast on July 29, 2020

On July 28, the average price of 4.75mm hot-rolled steel plates and coils in 24 major cities across the country was 4109 yuan/ton, down 2 yuan/ton from the previous trading day. Yesterday, the price of the black commodity futures market rose and fell. The spot market quotations rose slightly in the early trading session. After the rise, the transaction was normal. The purchase sentiment at the high price level slowed down. In the late afternoon trading, the spot market quotations fell slightly, but the merchants took the initiative The price cut mentality is not strong, especially in East China, where market resources are small, and the phenomenon of breaking specifications is obvious. Merchants have a strong wait-and-see mentality to go on the market and ship at market prices. However, the pressure in the northern region is relatively stronger than that in the south, and the price drops slightly. On the whole, the hot-rolled steel plate and coil prices on July 29 may fluctuate slightly and become weaker.
 
On July 28, the average price of 1.0mm cold rolled coils in 24 major cities in China was 4,578 yuan/ton, the same as the previous trading day. From the perspective of the fundamentals of cold rolling, due to the weak futures trend and the deviation in the market acceptance of high-priced resources, spot quotations are mostly dark drop shipments. In terms of demand, the terminal is mainly purchased on demand, and there is no replenishment situation. On the whole, the cold rolled steel market is expected to operate weakly and steadily today(July 29).
 
On July 28, the average price of 20mm plain carbon steel plates in 24 major cities across the country was 4050 yuan/ton, which was 1 yuan/ton lower than the price of the previous trading day. Judging from the sentiment of the mainstream regional traders in the market, the current stage is mainly based on shipments, and there are problems with periodic destocking. At the same time, only some of the upstream steel mills currently released the maintenance plan in August, and the supply pressure remains high. With the supplement of imported billet resources from abroad, short-term production reduction is unlikely. Signs of supply and demand misalignment have recently become prominent. In addition, judging from the recent trend of related types of hot coils, the relative strength of hot coils may partially affect the distribution of molten iron to the medium plate and hot coils in the later stage. From the perspective of the market material price difference, due to relatively more supply of low alloy in some regions, the price difference of general manganese has slightly contracted. In the short term, the market as a whole has no obvious pressure to highlight, and steel prices are expected to show a turbulent adjustment pattern.