Mysteel Weekly Report: Monitoring of Raw Material Prices for Steel Structures

Overview:

As regards raw materials for steel structures, last week, some representative varieties showed a fluctuating yet generally firm trend. Downstream sectors continued to maintain a stance of purchasing only what was strictly necessary, with procurement volumes remaining at moderate levels. Traders’ sentiment was also relatively subdued; current sales are generally yielding a profit margin. It will be necessary to continue monitoring macroeconomic conditions, and prices are expected to follow an unpredictable trend in the short term.

I. Overview of Key Data for This Week; II. Steel Market Analysis; 1. Prices and Transactions; Hot-rolled Coils; Market Conditions: Spot transactions are circulating in the market; some spot positions have been unwound; market conditions remain weak; traders’ sentiment remains moderate; currently, almost all goods sold are generating a profit; Subsequent macroeconomic developments still require close monitoring. Overall, it is anticipated that hot-rolled coil prices may fluctuate in the short term. Regarding transaction volumes, downstream procurement continues to be driven by essential demand, with the pattern of essential procurement on the downstream demand side remaining unchanged, whilst procurement volumes remain moderate. Medium and heavy plates: Market conditions are such that, overall, costs and tight supply are supporting prices, whilst market sentiment and weakening transactions are limiting upside potential. Medium and heavy plate prices are expected to fluctuate within a narrow range at current high levels this week. Regarding trading activity, end-users remain cautious about purchasing at high prices, with small-batch restocking to meet essential needs being the primary approach, resulting in relatively weak trading volumes. However, orders for specific grades are ample and production schedules are tight; downstream delivery pressures are high, and essential demand remains robust, supporting steel mills in maintaining their prices. Wide-flange H-beams: Given the current market conditions, trading activity for mainstream products has declined. End-users’ actual purchasing intent remains weak, and genuine demand in the market appears lacklustre. The downward pressure on prices is becoming increasingly evident. Based on a comprehensive analysis, it is anticipated that national section steel prices will fluctuate within a narrow range with a downward bias this week. Given the current trading situation, some end-users are currently focusing primarily on essential procurement, with no significant release of demand in the short term. In terms of inventory, there is currently a slight shift from mill stock to social stock, whilst traders’ restocking activities remain relatively moderate. Welded Steel Pipes: Given the current market conditions, the pressure to move stock in May is relatively high. It is inevitable that the market will have to sacrifice price to secure sales, and performance may vary across different regions. In the absence of any other positive news to drive the market, it is estimated that welded steel pipe prices this week may fluctuate within a narrow range, remaining in a stable state. The situation regarding transactions is as follows: recent macroeconomic news has not prompted sustained gains in ferrous metal futures, and spot trading has returned to fundamentals, with market transaction volumes beginning to decline. 2. The relevant calculations for costs and profit margins are as follows. 2. Regarding steel mill operations, Nanjing plans to carry out maintenance on a large bar mill line from 25 June. The maintenance will last for nine days and is estimated to affect the production of φ50–200 mm large bars by 25,000 tonnes. Changqiang plans to carry out a five-day maintenance operation on its bar rolling line from 1 to 5 June 2026; with an estimated daily impact of 0.25 million tonnes on the output of Φ45–130mm bars, amounting to a cumulative reduction of approximately 1.25 million tonnes. III. Supply and demand are in balance. IV. Market sentiment and preliminary assessments of next week’s outlook. V. Rapid dissemination of policy updates and industry highlights.

On the 12th, Taizhou Jingjiang Zhenxing Steel Structure Factory announced its scrap steel purchase prices, as follows: steel plate scrap, round bar ends and die steel are priced at 2,290; processed steel plate scrap at 2,250; and horseshoe scrap between 2,230 and 2,250. I-beams, channel sections, rebar ends and high-grade heavy scrap were priced at 2,220 to 2,240; heavy scrap at 2,180 to 2,200; raw sheared scrap at 2,030 to 2,060; and silicon steel sheets at 2,200; galvanised punchings at 2160, cold and hot-rolled punchings at 2180, hexagonal oil-coated sheets and oil-coated punchings at 2110, automotive parts at 2210, cold-rolled sheet at 2200, laser-cut sheets at 2,200, galvanised scrap for packaging at 2,170, rebar for packaging at 2,160, light steel studs, used galvanised rings and strapping at 2,030 to 2,060, used appliance sheet metal, supermarket shelving: 2000 to 2030; colour-coated corrugated sheets, galvanised wire and colour-coated corrugated sheets: 1800 to 1820; various cast iron equipment and large wrought iron processing materials: 2170; automotive cast iron moulds: 2230. Excluding VAT, unit: RMB/tonne.