Inner Mongolia steel market into the traditional off-season steel prices in July quarter slightly lower

In July, Inner Mongolia steel prices fell slightly.Among them, the comprehensive average price of construction steel and common plate is 4,136.67 yuan and 4,497.66 yuan per ton respectively.

Compared with June 2019, the price of construction steel and common plate decreased slightly by 0.56% and 0.10% respectively.Compared with July 2018, the price of construction steel increased slightly by 2.26%, while the price of common plate decreased slightly by 2.53%.

Other types of steel, round steel (16mm, HPB235), stainless steel plate (1.2, 304/2b cold rolling) in July the region's average price is 4162.92 yuan per ton, 16241.67 yuan;Month-on-month, round steel, stainless steel plate prices slightly increased by 0.11%, 0.10%;Year-on-year, the price of round steel slightly increased by 0.47%, the price of stainless steel slightly decreased by 3.28%.

Recently, the hot weather continues in many parts of Inner Mongolia, and the steel market is in the traditional off-season.In addition, real estate and infrastructure investment have fallen, making it difficult for downstream demand to recover quickly and the demand side is weak.And with the new round of central ecological and environmental protection supervision of the start, some steel production restrictions intensified.At the same time, due to the high price of iron ore and other raw materials, some steel production enterprises choose the wrong peak maintenance, steel supply decreased, the market presents a pattern of "limited supply, difficult demand".

According to industry analysts, at present, although environmental restrictions on the steel industry production capacity release has a certain inhibitory effect, but the effect is not obvious.With the resumption of production at vale mines in Brazil, the possibility of a sustained decline in iron ore prices will be further increased. Corporate profit margins will gradually recover and some production capacity will restart.In terms of demand, with the implementation of some infrastructure projects, the growth rate of real estate investment is accelerating. In addition, as the traditional consumption season of "gold, nine silver and ten silver" approaches, downstream demand may be released in advance.It is expected that in August, Inner Mongolia steel prices will show a "first restraint and then rise" trend.