The slowdown in the decline of the iron and steel raw materials market may further decline in the short term

On July 26, the domestic steel raw material spot market remained weak, but the decline was slightly slower than in the previous few days. Among them, the spot market for imported iron ore continues to decline, domestic spot prices of domestic refined fines have increased, steel billet market has been steadily weakening, and the coke market has continued to decline. The maritime market has experienced a slight decline.

Specifically, the imported iron ore market continues to fall today. The tenders for the three major mines in the external disk market reappeared, but the transaction price fell relatively to a relatively large extent. Affected by the decline in the bidding price of mines, the market also experienced different degrees of decline. The domestic port spot market continued to decline, and the pressure on individual species was more pronounced, with a larger drop. At present, the market business mentality is still more pessimistic, the steel mills are still in the wait-and-see phase, the market turnover is relatively light.

In domestic mines, the domestic market for iron concentrates fell weakly today, and the decline in individual markets increased significantly. Market transactions continued to slump. Among them, prices of iron powder in certain markets in Liaoning and Shandong regions have dropped by a certain extent, falling by 5-30 yuan/ton. At the same time, with the exception of a certain drop in the purchase price of iron powder from individual steel mills, the rest remained stable. At present, some steel mills begin to overhaul, and the purchase of iron powder is less, and the market turnover is poor.

Today's domestic steel billet market is steadily weakening. A few markets continue to fall. Individual markets have suffered a larger decline, but the decline has continued to slow over the previous few days, and overall market turnover remains relatively light. Tangshan billet prices continued to maintain stability this afternoon. Due to the weakening steel market, lower downstream demand, sluggish billet market shipments, and individual business prices dropped, but the transaction is still relatively small. At present, the local steel billet inventory is still at a low level, which has certain support for the price.

Today's domestic spot market for coke fell more than ever, and the decline in the market has increased significantly from the previous day. The decline in some markets has increased, and port prices and steel purchase prices have also fallen. The coke procurement enthusiasm of steel plants is low, most of them stop purchasing, and they are mainly wait-and-see. Individual steel mills have purchasing requirements, but purchase prices have been reduced by a large margin and transactions are difficult. At present, the operating rate of coke enterprises is still around 70%, and the pressure on the market is still relatively large. Coupled with the continuing weaknesses in the steel market and the coking coal market, the short-term coke market will continue to decline.

Today's scrap market prices continue to decline, and the decline is still maintained at 20-50 yuan/ton. Affected by the poor shipment of the steel market, the scrap purchases of steel mills have been reduced. At the same time, some steel mills continue to suppress the purchase price of scrap steel. The individual steel mills have been under pressure to reach 180 yuan/ton. It is expected that the steel scrap market will continue to fall further in the late period in the absence of a downtrend in the steel market.

Today, the domestic steelmaking pig iron market remains weak, with some market prices falling slightly, a drop of 30-70 yuan/ton, a slight increase from the previous day, and overall market turnover continues to slump.

In terms of shipping, the shipping market continued to decline on the 25th, of which, the Brazilian-to-Chinese shipping fee dropped by 0.018 to 17.821, and the Western Australia to China dropped by 0.18 to 6.758, a decrease from the previous day. At the same time, the BDI index continued to decline on Wednesday, with the drop of 2.09%, and the decline continued to widen, as both sea bream and Panamax ship rates fell.

The raw material market also accelerated its decline, weighed down by the continued gloomy decline in the steel market. With the downward adjustment of the factory price of the dominant steel mills, the spot market pressure has further increased. Although some steel mills are currently undergoing overhaul, the short-term impact on the market is limited. The contradiction between supply and demand in the steel market is still relatively large. The continued weakness of the raw material market has significantly weakened the support for the steel market. Coupled with the sluggish transaction in the steel market itself, in the short term, the steel market may still fall, which may drag down the raw material market further.