Steel prices fell below the 2010 low of 4,000 yuan/ton mark

According to the statistics, on July 18, the domestic comprehensive transaction price of steel fell by 4,068 yuan/ton, which was a decrease of 0.45%. This price also fell below the low of July 15, 2010, setting a new low in two and a half years.



According to the data, on the 17th, the domestic comprehensive transaction price of steel has fallen below 4,100 yuan/ton mark to 4,086 yuan/ton, which is close to the low point in 2010. Today, the price decline continues unabated, setting a new low. From the perspective of price trends, the domestic steel price decline this year is quite similar to 2010, both from the beginning of mid-April, and continued until mid-July. However, the price level was even higher in mid-April, 2010. The price index showed that the then high was 4,865 yuan/ton, which had been unilaterally dropped to 4,083 yuan/ton on July 16, a decrease of 16.1%; this year it was high in April. Points only 4,492 yuan / ton, to July 18 fell less than 10%.

In mid-April, the domestic steel price began to decline, and there was a brief stable operation in June. However, after entering July, the steel price ushered in a new round of accelerated decline, and prices of various varieties in various markets fell below 4,000 yuan/ton. , 3900 yuan / ton and 3800 yuan / ton mark. By the 18th, the high price in the Shanghai market had dropped to 3,640 yuan/ton, and the secondary rebar (20mm) also fell to 3,700 yuan/ton. The price data shows that the comprehensive transaction price of steel in July has dropped by 147 yuan/ton, a decrease of 3.5%.

According to analysis, overcapacity and economic growth are the main reasons for the decline in domestic steel products this year. Although domestic policies for steady growth have been strengthened since May, July to August are the traditional off-season for steel consumption, and the policy effect is relatively limited. At the same time, domestic steel production remained at a high level. In June, the average daily output of crude steel in China reached the second highest level of 2.007 million tons. In the first half of July, the average daily output of crude steel was still estimated to be 1.5851 million tons. The current decline in steel prices and the billet, iron ore and other raw materials form a vicious cycle, short-term prices or difficult to stop falling.