Today, steel market prices saw a slight increase. The ex-factory price of steel billets in Tangshan rose by 10 yuan/ton; the ex-factory price of strip steel in Tangshan increased by 10 yuan/ton; mainstream market prices for construction steel in Tangshan went up by 20 yuan/ton, while mainstream prices for hot-rolled coil rose by 10 yuan/ton; Tangshan imported ore prices increased by 5-7 yuan/ton; coke prices remained stable. Black metal futures fluctuated with a slight upward bias, with rebar October contract up 1.04%, hot-rolled coil October contract up 1.03%, iron ore September contract up 1.60%, and coke September contract up 1.10%.
Overall, the steel market today showed a trend of fluctuating with a slight upward bias. All black metal futures closed in the red, which helped improve sentiment in the spot market. According to the steel industry PMI, although the index slightly declined in April, the foundations for demand release remain, and the market continues to operate steadily. This week, the total inventory of the five major types of steel decreased, with both social and factory inventories declining simultaneously. However, weekly production fell compared with the previous week, and apparent consumption also decreased, showing a pattern of 'simultaneous reduction in supply and demand, inventory destocking.' Rebar experienced the most notable destocking, with slightly weaker apparent demand; cold-rolled and medium-thick plates saw a week-on-week rebound in apparent demand. Overall, the market is still in the destocking process, but the intensity of demand release has weakened somewhat.
In terms of costs, iron ore prices remained high and fluctuated, and the third round of coke price increases is still under negotiation and has not yet been implemented, so cost support is slightly weaker than before. Considering the approach of the rainy season in the south, the market is cautious about the sustainability of future demand release, and overall trading volume has not seen a significant increase. In summary, steel prices may continue to fluctuate with a slight upward bias after the holiday, but the potential for upward movement is expected to be limited.
