Bluff or comeback? What else is there to watch in the steel market?

Today, the spot price of the steel market rose steadily, and the futures rebounded slightly. In terms of varieties, a small number of varieties such as threads, hot coils, and medium plates have risen by 10-20 yuan, and the overall average price continues to rise. Other varieties such as cold rolling and coating are relatively stable. There are no bright spots in market transactions, and there is not much difference compared with yesterday. The market mentality is stable.
(To learn more about the impact of specific steel products, such as Cold Rolled Steel Strip Factory, you can feel free to contact us)
Strongly affected by the Fed’s CPI data. After the U.S. CPI data was released overnight, it was significantly better than market expectations. The U.S. dollar index once fell by 1%. U.S. stocks, European stocks, crude oil, and gold all rose, and black commodities rose. In the short term, the voices of reducing the intensity of interest rate hikes and still not relaxing interest rate hikes are both louder, and there are two voices in the United States. But last night’s market at least reflected the expectation of speeding up the end of the tightening cycle.
(If you want to know more about the industry news on Cold Rolled Strip Factories, you can contact us at any time)
The customs department also released the import and export situation in June and the first half of the year. It shows that the total amount is weakening but the export of steel products is better. In terms of total volume, China’s exports denominated in RMB from January to June increased by 3.7% year-on-year, while from January to May it increased by 8.1%. The rate of decline further expanded, which is still such a decline in the case of the depreciation of the renminbi, reflecting the pressure of foreign trade.
(If you want to get the price of specific steel products, such as Cold Rolled Steel Strip Suppliers, you can contact us for quotation at any time)
In terms of steel exports, in June 2023, China exported 7.508 million tons of steel, a year-on-year decrease of 0.7%; from January to June, my country exported 43.583 million tons of steel, a year-on-year increase of 31.3%. In June, my country imported 612,000 tons of steel, a year-on-year decrease of 22.6%; from January to June, my country imported 3.741 million tons of steel, a year-on-year decrease of 35.2%.

From the current point of view, the black overall has the characteristics that the raw material rises faster than the finished product, and the finished product has a small increase and a slow growth rate. This is mainly determined based on the “weak reality” of steel products, and the drive to rise has not yet been stimulated. However, the price of iron ore is relatively strong, coke has launched a second round of price hikes, and industrial products have taken the lead in strengthening in the chemical industry. The market still has positive expectations for carbon emissions and stable growth policies. The steel gap has not been widened at the basis, and it is necessary to continue to make room on the disk. After gradually correcting the decline since last week this week, some markets may still rebound.