It is reported that the total contract volume of overseas billets of more than ten domestic companies will reach 700000 tons this time. The time to arrive at Jiangyin port is mainly from the middle of November to January next year. The downstream receiving steel plants are mainly distributed in Jiangsu, Guangdong and other provinces. The landing price per ton to China (mainly Jiangyin port, Jiangsu Province) is 150-200 yuan lower than the current domestic billet price. Such a huge profit has greatly stimulated the appetite of importers, and also enabled steel mills to obtain resources and have more choices.

Steel prices will fall in November, and the winter storage situation may also be affected!

At present, some billet exporting countries have gradually turned their resources to China; with the continuous decline of the EU economy, the demand for steel products has been reduced, and the price of some billets in the international market has fallen. Compared with that in China, the main reason is that the government strictly controls the import of scrap steel, and domestic buyers have turned to purchase billets from other countries at relatively favorable prices as substitutes for scrap steel.

From the import data of steel billets in 2019, China's steel billets imported from western Asia increased sharply from 0 tons at the beginning of the year to 35000 tons in June, and increased continuously in July and August to 87000 tons and 121000 tons; the steel billets imported from Brazil from January to April were 0, and 9800 tons in May, then 0 in two consecutive months, and increased abruptly to 46000 tons in August. At the same time, with a large number of domestic enterprises investing and building factories in Southeast Asia in recent years, the steel billets imported from Southeast Asia in China have also shown an upward trend since 17 years, but this is not the main factor in this surge of steel billets.

Influenced by the decline in the import demand of traditional steel billets in Europe, the price of steel billets exported by cis and other countries has dropped significantly recently. The FOB price of steel billets has been nearly 700-900 yuan / ton lower than that of the same kind of steel billets in China. Considering the tariff and freight, compared with the same kind of steel billets in China, it is very competitive. The long-term low price will promote more domestic traders and independent rolling enterprises to purchase foreign billets, which will further impact the domestic market.

Will scrap hold up in the future?

At present, most steel traders are holding a wait-and-see attitude. It depends on other people's actions whether they store in winter or not. It is impossible for steel traders to freeze their funds, so there is a great pressure to store goods. If everyone is hoarding, the steel traders will not be able to sit down. They are a group for newspaper group heating. Some of the steel prices are raised by their own hype. Affected by this, Weiguo information thinks that the scrap price will remain low for some time in the future. In November, the scrap market in Wuxi will fluctuate and the price will continue to weaken! (From LGMI)