Steel scrap
Narrow adjustment of scrap steel, black period spiral green, hit market confidence, due to the steel mill inventory pressure is still large, steel mill price pressure is obvious, in the short term to follow the price of the material changes, the market is more cautious, is expected to narrow shock scrap operation.
Spiral steel
The construction of the project is relatively weak, the market demand is cold, and the price of building materials is expected to be stable and strong today.
Iron ore
Shipping prices continue to decline for a week, the RMB central price quote is lower, iron ore cost support is weakened, and it is expected that the mine price is stable and weak today.
coke
Coke enterprises limited production scope further expanded, coke supply showed a downward trend, but downstream demand is still weak. Coke prices are expected to remain stable today.
Learn about the business
1, Vale is expected to develop a new iron ore compaction industrial plant
According to a statement released by Vale, the U.S. Department of Energy selected Vale to begin financing negotiations as part of an industrial demonstration program under the Bipartisan Infrastructure Act and the Inflation Reduction Act. The negotiated financing amounted to $282.9 million. The Vale project envisages the development of a new iron ore batching industrial plant.
2. Ministry of Industry and Information Technology: China’s industrial economy has strong resilience and potential
Zhao Zhiguo, spokesman for the Ministry of Industry and Information Technology and chief engineer, said today at a press conference of the State New Office that in 2024, the external environment facing the industrial economy is still grim and complex, but the development of China’s industrial economy has strong resilience and potential. We have the confidence, ability and conditions to overcome difficulties and challenges and promote a sustained recovery of the industrial economy.
3, Mexico made preliminary anti-dumping review of China welding microwires
According to the China Trade Remedy Information Network, on March 25, the Mexican Ministry of Economy issued a notice, the preliminary review of the anti-dumping period of the welding microfillet originating in China (Spanish: microalambre para soldar), the preliminary ruling to maintain the current anti-dumping duty of 0.57 US dollars/kg unchanged. The product in question is a solid carbon steel wire of mangano-silicon alloy with a diameter of 0.6 to 1.6 mm, whether coated with copper or not, and melted by arc heating to weld steel. The TIGIE tax codes of the products involved are 7229.20.01, 7229.90.99 and 8311.90.01. The announcement shall take effect the day after its promulgation.
4, in mid-March key steel enterprises crude steel daily decline
According to statistics from the China Iron and Steel Association, the average daily output of pig iron in key steel enterprises in mid-March 2024 was 1.836,100 tons, down 0.41% from the previous ten days and 6.56% from the same period last year. In mid-March, the average daily crude steel output of key steel enterprises was 2.0476 million tons, down 0.51% from the previous ten days and 9.12% from the same period last year. In mid-March, the average daily steel output of key steel enterprises was 1.965,200 tons, up 1.95% from the previous ten days and down 8.05% from the same period last year. In the middle of March, the steel inventory of key steel enterprises was 19.5337 million tons, an increase of 0.97 million tons from the previous ten days, up 0.05%; 554,700 tons more than the same period of the previous month, up 2.92%; An increase of 576,200 tons over the same period last year, up 3.04 percent.
Macro view to hear
1. New home transactions in 10 major cities increased by 27.9% month-on-month
Last week (March 18 – March 24), the total area of new commercial housing transactions (contracts) in 10 key cities was 1,972,700 square meters, an increase of 27.9% compared with the previous year, down 41.9%, and the year-on-year decline continued to narrow. In the same period, the total area of second-hand housing transactions (contracts) in 10 key cities was 1,892,200 square meters, an increase of 11.7%, and a sequential increase for 5 consecutive weeks, down 22.4% year-on-year.
2. Ministry of Finance: The central level general public budget expenditure will increase by 8.6% in 2024
Relevant officials of the Ministry of Finance publicly answered reporters’ questions on the central budget for 2024, and concentrated financial resources to ensure major strategic tasks of the country. Do “big money generous, small money stingy”. In 2024, the central government’s general public budget will increase by 8.6%, and only increase by 0.3% after deducting spending on key security projects, including spending on national defense and armed police, spending on science, technology and education, spending on central reserves, and interest payments on the issuance of government bonds. At the same time, we will strictly control general expenditures, reduce expenditures by central government departments as much as possible, and vigorously encourage all departments to adjust and optimize the spending structure so that funds can be used effectively. In the next step, the Ministry of Finance will, in accordance with the deployment of the Party Central Committee and The State Council, always strictly control the expenditure threshold, continue to strengthen the budget management of the “three public” funds, urge the central departments and local finances to fulfill their main responsibilities, strengthen budget constraints, serious financial discipline, and further implement the requirements of Party and government organs that are accustomed to tight days.
International to smell
1. Singapore’s industrial output rose 3.8 per cent in February from a year earlier
Singapore Economic Development Board released data on March 26, February industrial output growth of 3.8%, expected growth of 0.5%; Quarter-on-quarter growth of 14.2% versus expectations of 2.1%. Pharmaceuticals output rose 73.2 per cent year on year in February, while petrochemicals output was 22.3 per cent.
2. France’s deficit rises to 5.5% of GDP in 2023
France’s budget deficit is slipping out of the government’s control. The gap between revenue and spending widened to 5.5 percent of GDP in 2023 from 4.8 percent the previous year, official data showed on Tuesday, much larger than the 4.9 percent the government had planned in the budget. With France, the euro zone’s second-largest economy, stagnating, tax revenue growth slowed sharply, while the pace of spending expansion slowed only slightly.
3, US durable goods orders rose 1.4% in February from the previous month
Following the plunge in January, the preliminary value of durable goods orders in February turned negative to positive, exceeding expectations. The impact of Boeing’s “aircraft gate” faded, with non-defense aircraft orders up 24.6% quarter-on-quarter. But orders for durable goods were revised down further to -6.9 percent from January’s previous reading.
Today’s steel market forecast
The finished material market is weak, the terminal demand is saturated, traders are cautious and wait, and the speculative demand is not obvious. The fundamental contradiction of the black chain still exists, the production and sales of building materials are poor, the hot roll trend is warm but difficult to reach the thread pressing, steel consumption is lower than the same period in previous years, the superposition of high inventory pressing, and the resistance above the steel price is strong. Prices are expected to hold steady and fall today.
