Steel mills may continue to cut prices

According to my steel network disk forecast, Shagang, the dominant steel producer in East China, will announce mid-term ex-factory prices today. The market expects prices to be lowered significantly and short-term market prices may continue to decline.

My steel network monitoring data showed that the average price of rebar in 25 major markets across the country fell on the 10th, and the average price of HRB400 20MM rebar was 4,145 yuan/ton, which was 13 yuan/ton lower than the price of the previous trading day.

The rebar market experienced a big drop yesterday. Market transactions were generally sluggish across the country. The mainstream price of tertiary rebar in the Shanghai market had fallen below the 4,000 yuan/ton mark, and the secondary rebar also approached 3,800 yuan/ton. The market is vulnerable. The steel mills have also intensified their promotional efforts. The price of the southern leading steel mills is based on market observations, and the price decline is thus relatively large.

Shagang, the dominant steel producer in East China, will introduce medium-term prices today. The market expects prices to be closer to the market, and the downward adjustment may be larger, which will have a certain impact on the market. In addition, the macro-level news about the increase in real estate control has always suppressed the market, and the short-term downward trend in prices is more obvious. It is expected that the price will move further downwards.