I Market Review

Beijing: The market is semi-closed. The market quotation is different and the transaction is sparse. At present, the downstream enterprises have not completely resumed work or production and the transportation is limited. HBIS Group large-sized rebar is priced at 3,350-3,400 yuan per ton and small-sized rebar is priced at 3,450-3,500 yuan per ton. Coiled rebar price is 3,480-3,500 yuan per ton. The inventory continues to increase and attains around 0.85 million tons. For some enterprises, the inventory has approached to its upper limit.

Tianjin: Construction steel fell at first then rose in this week. The price cumulatively decreased by 30 yuan per ton. At present, large-sized rebar is priced at 3,380-3,420 yuan per ton and the transaction has not recovered yet. Downstream enterprises have not completely resumed production. The inventory has increased to more than 0.3 million tons. CR steel greatly declined. CRC price dropped by 170 yuan per ton. At present, 1.2mm CRC is priced at 3,980-4,040 yuan per ton. 3.0mm pickled coil price is 3,830-3,870 yuan per ton. The transaction is generally sparse. Base price of Tianjin common carbon HRC is priced at 3,350-3,370 yuan per ton. HRC inventory in Tianjin market increased to 56,100 tons to 181,000 tons.

Handan: Medium plate price dropped at first then increased. The medium plate price has cumulatively increased by 10-20 yuan per ton. The transaction gradually recovers in this week. Market inventory and inventory in steel mills continued to increase. At present, medium plate inventory in Handan market is nearly 0.8 million tons and that of coil exceeds 0.3 million tons. As for steel mills, ex-work price of steel mills moderately inclined on Thursday. Ex-work price of Puyang Steel is locked at 3,390 yuan per ton and Jinding Steel is 3,350 yuan per ton.

Tangshan: Construction steel price cumulatively decreased by 30 yuan per ton. Grade III large-sized rebar is priced at 3,280 yuan per ton in main markets. Traders mainly focus on selling. Tangshan Flat steel transaction is improved in this week, among which transaction status is different in regions. Some rolling enterprises announced to resume production on February 24, 2020. Section steel is priced at 3,380-3,400 yuan per ton and strip steel price is 3,170-3,230 yuan per ton.

Shanxi: Construction steel price stabilized except for 100 yuan per ton decline in Shougang Changzhi Steel. Grade III large-sized rebar is priced at 3,450 yuan per ton. The transaction is weak and only some key projects resume work. As for flat steel, medium plate price is 3,600 yuan per ton and coil price is 3,530 yuan per ton with sparse transaction.

Shenyang: Market price mainly stabilized. Large-sized rebar is priced at 3,350 yuan per ton and coiled rebar is priced at 3,450 yuan per ton. The inventory greatly increased after Chinese New Year. Construction steel inventory inclines by 126,500 tons to 553,000 tons in Shenyang, up 245,000 tons year on year. Most traders are pessimistic about the market development.

Changchun: Construction steel transaction is sparse. Large-sized rebar price is 3,330-3,350 yuan per ton. HRC price cumulatively increased by 20 yuan per ton. Tonghua Steel 3.75-9.75*1500mm HRC is 3,320-3,330 yuan per ton. Market price decreased in early week and the transaction is sparse, the price greatly increased stimulated by futures price and inclined price in Shenayng market on Thursday. The transaction is improved. At present, the delivery of products on Tonghua Steel is basically normal and market confidence gradually recovers.

Harbin: Construction price is not quoted because of the post-settlement price policy from 15, March. Flat steel priced fell at first then stabilized in this week. Base price of 5.75mm common steel is priced at 3,400-3,450 yuan per ton. Traders have not returned to work and the transaction is sparse. Harbin city is announced to be shut down on February 19, 2020.

In this week, ex-work price of Shougang Changzhi Steel cumulatively decreased by 100 yuan per ton. Ex-work price of Shanxi Steel stabilized. Medium and heavy plate price of Puyang Steel cumulatively increased by 40 yuan per ton and Jingye Steel raised by 10 yuan per ton; Jinding Steel cumulatively inclined by 50 yuan per ton. Construction steel of Lingyuan Steel cumulatively declined by 20 yuan per ton.

Inventory: Construction steel inventory continued to increase and flat steel inventory moderately incline except for Tianjin and Shenyang markets. Due to the transportation limitation, inventory in steel mills in North China (vehicle transportation) continues to increase and HRC inventory in Northeast China decreases.  

Maintenance Information: Two blast furnaces (Tangshan Qianan rolling enterprise) stopped production on February 14, 2020 and one 1250mm HRC production line stopped production on February 15 and HRC output is reduced by 4,000 tons per day. 2# blast furnace (2000m³) of HBIS Group Tang steel stopped production from February 19, 2020 and hot metal output deceases by around 5,000 tons per day. 1 blast furnace of Shanxi Hongda Steel is maintained for 34 days from February 20, 2020 and hot metal output decreases by 1,900 tons per day. Three blast furnaces (480m³, 660m³ and 1260m³) of Jilin Xinda Steel are maintained in turn and the maintenance is expected to be finished on March 17, 2020. The hot metal output reduces by 1,600 tons per day, 2,300 tons per day and 3,800 tons per day separately. At present, one wire rod production line and one H beam production line continues to be maintained, then wire rod output reduces by 1,500 tons per day and H beam output reduces by 2,000 tons per day.

3# 3200m³ blast furnace of HBIS Group Tangsteel was maintained from February 11, 2020 and resumed production on February 14, then hot metal output is around 8,000 tons per day. One cold rolling continuous annealing line of Ansteel Tiantie and one hot-dipped galvanized steel production line resumed production on February 17, 2020 (except cold rolling continuous annealing line). The CRC output is estimated to increase by around 2,000 tons per day and galvanized steel output rose by around 1,100 tons per day.

II Trading Tip