Haihao Group monitors market trends to keep clients informed
At Haihao Group, we believe that staying informed about market trends is crucial for maintaining the highest standards in our products and services. We closely monitor the raw material markets and share valuable insights with our clients. Recently, the China Steel Price Index (CSPI) report highlighted significant trends in the steel market. This report provides a comprehensive analysis of these trends, helping our clients understand the current market dynamics and make informed decisions.
Haihao Group
https://youtu.be/hPdB-kTG4H0?si=GRasI9xko4SzGgbI
Market Overview: June 17 – June 21
During the week of June 17 to June 21, the China Steel Price Index (CSPI) continued to decline, marking the fourth consecutive week of decrease. Both the long products index and the flat products index showed a downward trend.
CSPI: 104.23 points, down by 0.29 points (0.28%) from the previous week, 2.80 points (2.62%) from the end of last month, 8.67 points (7.68%) from the end of last year, and 5.28 points (4.82%) year-on-year.
Long Products Index: 106.92 points, down by 0.28 points (0.26%) from the previous week, 3.99 points (3.60%) from the end of last month, 9.19 points (7.91%) from the end of last year, and 6.21 points (5.49%) year-on-year.
Flat Products Index: 102.31 points, down by 0.29 points (0.28%) from the previous week, 2.20 points (2.11%) from the end of last month, 9.49 points (8.49%) from the end of last year, and 7.65 points (6.96%) year-on-year.
Price Changes of Major Steel Products
Among the eight major steel products, prices fell across the board compared to the end of last month, with rebar experiencing the largest drop and galvanized sheet the smallest.
6mm High Line: ¥3866/ton, down ¥155/ton (3.85%)
16mm Rebar: ¥3597/ton, down ¥150/ton (4%)
5# Angle Steel: ¥3826/ton, down ¥100/ton (2.55%)
20mm Medium Plate: ¥3819/ton, down ¥84/ton (2.15%)
3mm Hot Rolled Coil: ¥3830/ton, down ¥97/ton (2.47%)
1mm Cold Rolled Sheet: ¥4308/ton, down ¥90/ton (2.05%)
1mm Galvanized Sheet: ¥4879/ton, down ¥41/ton (0.83%)
219mm x 10mm Hot Rolled Seamless Pipe: ¥4736/ton, down ¥40/ton (0.84%)
Cost Perspective
Imported Iron Ore: Average price in May was $105.80/ton, down $7.32/ton (6.47%) month-on-month, $17.46/ton (14.17%) from December 2023, and $11.11/ton (9.50%) year-on-year.
Domestic Iron Concentrate: ¥944/ton, down ¥45/ton (4.55%) month-on-month, ¥166/ton (14.95%) from the end of last year, and up ¥40/ton (4.42%) year-on-year.
Coking Coal (Grade 10): ¥1898/ton, down ¥65/ton (3.31%) month-on-month, ¥695/ton (26.80%) from the end of last year, and up ¥295/ton (18.40%) year-on-year.
Coke: ¥1946/ton, down ¥58/ton (2.89%) month-on-month, ¥508/ton (20.70%) from the end of last year, and up ¥92/ton (4.96%) year-on-year.
Scrap Steel: ¥2791/ton, down ¥87/ton (3.02%) month-on-month, ¥198/ton (6.62%) from the end of last year, and ¥125/ton (4.29%) year-on-year.
International Market
CRU International Steel Price Index in May was 202.8 points, down 2.8 points (1.4%) month-on-month, 15.9 points (7.3%) from the end of last year, and 36.4 points (15.2%) year-on-year.
CRU Long Products Index: 206.4 points, down 2.9 points (1.4%) month-on-month, and 30.4 points (12.8%) year-on-year.
CRU Flat Products Index: 201 points, down 2.8 points (1.4%) month-on-month, and 39.4 points (16.4%) year-on-year.
Regional Breakdown for May:
North America: 240.5 points, down 10.4 points (4.1%) month-on-month.
Europe: 217.7 points, down 4.1 points (1.8%) month-on-month.
Asia: 172.4 points, up 2.4 points (1.4%) month-on-month.
The CSPI’s continued decline reflects a complex market situation characterized by an oversupply in the domestic steel market. Despite recent national policies to stabilize the real estate market, steel demand remains weak, particularly as the industry enters its traditional low season. Steel production and inventory levels have increased, suggesting that prices will likely remain under pressure in the short term. At Haihao Group, we remain committed to monitoring these trends and sharing timely insights with our clients, ensuring they are well-informed and can make strategic decisions in a fluctuating market.