1. The price part
According to the figure above, it can be seen that the price of wire rod in
hebei province rose in shock in November. The price of wire rod in hebei
province rose by 120-150 RMB/ton.
2. Profit Part
Gross margins on tonnage of construction steel rose sharply in November.As of
November 29, the gross profit of wires is 587RMB/ton, 223 RMB/ton more than the
same period last month (October 29), 580RMB/ton more than the same period last
year. The main reason for the increased in gross margin of per tons of
construction steel is that construction steel prices to be a large increase.
3. Raw material cost
In November, the import market fell down firstly and then rose, with the
monthly average price of 646RMB/ton, down 50 RMB/ton and the rates is 7.1%
compared previous month. One reason for the price decline is the approaching of
the heating season, the release of market pessimism in advance, the attitude of
the miners is weak, long short of the future market, low prices to reduce the
stock mainly, the price continued to decline;Second, the emergency response of
heavy pollution weather was implemented in many steel mills, and production was
limited to different degrees in sintering and blast furnaces, which affected the
purchasing rhythm and replenishment enthusiasm of steel mills. In the latter half
of the month, driven by the strong rise in steel prices, steel mills
replenishment enthusiasm increased, and the price of imported mines rose
rapidly; At the end of the steel price as fallen, but the port individual
resources are more tight, mining prices are still strong.
November tangshan billet prices first down and then up, the overall price
rose. This month, the high of tangshan billet is 3480 RMB/ton, and the low is
3310 RMB/ton. Analysis of reasons: on the one hand, this month, the downstream
finished products by the terminal replenishment demand, a large number of
inventory decline, and the steel enterprises overhaul, the overall supply
pressure is not big, finished product prices actively pull up the billet prices
have greater support. On the other hand, the billet inventory is at a low level,
the steel mills are more active in the production of finished products, the
billet itself delivery pressure is not big, the downstream steel rolling
enterprises can still profit, active production, the billet itself shipment is
relatively smooth.
4. Steel mill inventory and transaction status
Wuan wire type steel mills, for example, wuan in November 467100 tons of
steel plate line clinch a deal amount is 72100 tons,395000 tons in October
18.25%, since November, the restricted by policy, the area of the steel mills
began to carry out the policies of the leak, a slight drop in output, demand and
due to warmer winters performance stable, ease the contradiction between supply
and demand, building materials market price rising. In addition, the strong price
of conch and raw materials, further driving the market enthusiasm, steel
enterprises and businesses actively pushed up, foil the market atmosphere,
support the market rise, the overall turnover in November increased compared to
last month.
5. Wuan steel wire inventory total scale
Take the Wu'an Line Steel Plant as an example. In late November, the steel
plant's inventory of steel was 128,000 tons. The overall change this month. The
arrival of the heating season has no significant impact on production. The
downstream demand is generally stable. It is affected by the rebar futures. For
example, Threaded Reinforcing Steel Mesh, the steel stocks of the company
increased during the 2 and 3 weeks of this month, and the screw growth rate in
the later period slowed down, and even the steel plant inventory increased
accordingly.
November overall hebei wire rod price whole is strong, after entering in
December, hebei wire rod mills production has much affected by the pollution of
the local weather conditions, is expected to change frequency is higher, but the
overall effect, modest, phase of the screw, line level, short-term market broken
bits 5 daily average lines and 10 - day moving average, upward trend, above the
pressure in 3630 points, the support level in 20 daily average lines below 3535
points.Raw materials are more short on the market, it is difficult to form
support for the spot.Zhuochuang is expected in December hebei wire prices will
be weaker shock, acumulative decline of 120-200 RMB/ton.
