August 28 Steel Price Forecast

Yesterday, the mainstream of domestic steel prices entered a steady ups and downs, and the price of hot and cold coils rose steadily, while prices of building materials, plates, sections, pipes and other materials showed steady fluctuations and weak adjustments. As of yesterday, China's third-order thread in the lowest price market in North China 20mm three-tier thread offer to 3520 yuan / ton, East China, Nanjing, Shanghai, Jinan market specifications with the price to 3480-3490 yuan / ton; 20mm Puban North China minimum The prices of Shijiazhuang and Shijiazhuang fell to around 3520 yuan/ton, and the Jinan market in East China was quoted at the same price as 3560 yuan/ton. In addition, as of yesterday, the average price of the 20mm HRB400 rebar mainstream market was 3,648 yuan/ton, down 2 yuan/ton from the previous trading day; the average price of the 20mm plate mainstream market was 3690 yuan/ton, down 2% from the previous trading day. RMB/ton; the average price of the 4.75mm hot-rolled coil in the mainstream market was RMB 3,700/ton, up RMB 3/ton over the previous trading day; the average price of the 5# angle iron mainstream market was RMB 3,647/ton, down from the previous trading day 3 yuan/ton.

News side: The open market yesterday put 71.5 billion yuan in net sales. The end of the month is approaching and the funding side will be tested again. However, yesterday's central bank's reverse repurchase and treasury cash tenders added a large amount of liquidity to the open market. Together with the central bank bills, net deposits reached 71.5 billion yuan in a single day. Although the scale of the launch was relatively large, analysts pointed out that the effect of the end-of-month factors and the continuation of the central bank bills on the funding side is still bearish. Yesterday, the inter-bank money market rates were mostly higher, with the money market benchmark interest rate - the weighted average interbank price of 7-day pledged repurchase closing up 192.7 basis points to 4.2496% over the previous day.

Cost side: After yesterday's cumulative drop of 10 yuan/ton in Tangshan billet, Tangshan 150 billet was reported at 3140 yuan/ton this morning. In addition yesterday, Pinggang, Yufeng, Zhengzhou Special Steel, Hebei New Gold and other manufacturers of building materials prices down 20-50 yuan / ton range; Puyang plate price policy down 30 yuan / ton, Xin Steel cold roll up 30 Yuan / ton. On the whole, with the exception of a small number of manufacturers, the price adjustment is still operating under steady and downward adjustment, and most other manufacturers' price adjustments are based on stable operations.

** Surface: Yesterday, rebar main contract Rb1401 opened lower and higher, opened 3801, thread closes 3818 rose 17 due to stronger support near yesterday's 60-day moving average, afternoon thread to lighten up and stand 3800 line, pull up signs clear, It is expected that the thread will fluctuate within a narrow range today.

Demand side: Yesterday's end demand release did not rebound with the rise of some of the prices. Instead, it showed a significant drop in transactions, and each business had a stronger wait-and-see attitude.

Taken together, the price of steel billets continued to decline slightly yesterday. Coupled with the current majority of manufacturers price adjustment is also stable in the weak down the main, making the current businesses wait and see mood is relatively strong, is expected today mainstream quotes will also continue to stabilize a few ups and downs with the main consolidation. Among them, the average price of rebar in the mainstream market today is adjusted by -10 to 10 yuan per ton, and the average price of 20mm tertiary rebar in the mainstream market fluctuates between 3640 and 3650 yuan per ton; today's plate prices in the mainstream market will be adjusted. -10 ~ 10 yuan / ton, the average price of 20mm plate in the mainstream market fluctuated between 3680 ~ 3700 yuan / ton.