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The copper strip has a decisive effect on the market price
- 2020-09-09-

The copper strip has a decisive effect on the market price


In September of this year, Tangshan rolled products were all at their lowest level in the past ten years, and some companies even suffered losses. Rolling lines were reduced in production and overhauled frequently, resulting in low rolling stocks. However, the price of steel products in various markets continued to drop, and the enthusiasm of downstream manufacturers to place orders was frustrated. As a result, the inventory of the copper strip market was low and the shortage of specifications increased. After the news of the production suspension was carefully interpreted, it was reported that the actual impact was not as severe as previously imagined, and downstream users were cautious about the sharp rise in steel prices, resulting in a sharp drop in rolled steel sales, panic spreading, and steel prices falling again. Falling endlessly. The panic decline lasted for a whole week, and the decline was large. In the current round of decline in the ex-factory price of Tangshan billet, narrow strip steel once again played the role of "pioneer". Last time we talked about the sharp rebound in the ex-factory price of Tangshan billet, and the intensity was strong; in addition to the trend, the copper belt is more caused by the concentration of macro news. This time, we will focus on discussing and thinking about the downstream demand of Tangshan billet, starting with several large billets in Tangshan, and trying to clarify as much as possible the beginning and end of the sharp drop in billet this week. Finished products fell almost across the board this week, with some varieties falling by more than a hundred. The main reason is that terminal demand has been sluggish, but steel prices have risen excessively last week. Affected by the decline in finished materials, imported mines mainly wait and see as a whole. With the completion of the replenishment of steel mills, the mainstream resources in the later period will be in Hong Kong, and inventory has become the focus of business attention. Although the port transactions are relatively good at low levels, most people are not confident that the transactions will continue to improve. They only express one step at a time. The author believes that under the circumstances of the general environmental deviation of the steel market, the stocks of imported mines and ports will stop falling and increase next week. High probability event. The impact on the market price of billet is limited. More than 80% of section steel companies need to purchase steel billets outsourcing, which is highly dependent on the billets. However, most of the strip steel mills have blast furnaces, and most of the billets have surpluses, and some of the resources are mostly sold outside. The copper strip has a decisive effect on the market price.