On July 15, Li Zhongshuang, general manager of Shanghai Ruikun Metal Materials Co., LTD., said in an interview with China Metallurgical News that the recent hot and cold rolling coil market is stable to good running situation, it is expected that in the short term plate prices will rise steadily.
Li Zhongshuang introduced, since entering July, the Shanghai market cold and hot rolling coil prices are rising.In early July, the price of cold rolled coil in Shanghai market rose 100 yuan/ton, while the price of hot rolled coil rose 130 yuan/ton.“This is an increase of 90 yuan to 100 yuan per ton in the price of hot and cold rolled coil in June. It is also an early reaction to the expected release of effective demand from downstream terminals after the rainy season,” Li said.
In addition, Li zhongshuang reminded market participants to pay attention to the following factors affecting the market conditions:
First, the downstream industry boom, strong demand resilience.With the full resumption of the downstream manufacturing industry, the production and sales of automobiles, home appliances and other industries have improved significantly.
From the perspective of the automobile industry, data from China Association of Automobile Manufacturers showed that China’s automobile production and sales continued to recover in June, with monthly production and sales both maintaining growth month-on-month and year-on-year.To be specific, in June, China’s automobile production and sales reached 2.325 million and 2.33 million respectively, up 6.3% and 4.8% month-on-month and 22.5% and 11.6% year-on-year respectively.In the first half of the year, China’s automobile production and sales reached 10.112,000 and 10.257,000 respectively, down 16.8% and 16.9% year-on-year respectively, and the decline continued to narrow.According to the CAAM, China’s auto production and sales maintained a good momentum in June because the overall economic recovery in June continued to improve, both supply and demand in the manufacturing sector continued to pick up, the consumer market continued to improve, the construction of major infrastructure projects accelerated, and the implementation of policies to promote auto consumption in various regions.
Li Zhongshuang believed that the growth of automobile production and sales injected power to boost the demand for cold and hot rolled coil. It is expected that the production and sales of automobiles will continue to maintain a good momentum in the second half of this year. The demand for cold and hot rolled coil has strong toughness, which supports the price of cold and hot rolled coil to stabilize and strengthen in the later period.
From the home appliance industry, in June, domestic home appliance sales increased significantly.Industry research shows that the prosperity of China’s home appliance industry picked up in June. With the implementation of the new national standard for air conditioners (GB21455 “Limit value and Energy Efficiency Level of Room Air Conditioners”), the average price of home appliance industry may stop falling and rise, driving home appliance consumption to improve.
Second, the “strong and weak” situation has changed.At present, the price difference of cold and hot rolled coil plate and rebar, wire rod and other prices has returned to the normal level, “long strong plate and weak plate” has been turned into “long weak plate and strong”, some plate prices are much higher than the price of long material, steel mill plate production profit has increased.
