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[brief Review of SMM Thread] the flood season attacked and the transaction continued to weaken.
Jun 10,2019 18:44CST
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Source:SMM
The content below was translated by Tencent automatically for reference.

Today, most parts of the country fell by 10 to 50 yuan per ton, and the market transaction level was generally stable. A small rebound in afternoon futures led to market transactions, but the demand side has a strong wait-and-see mentality. Overall, Monday's trading situation was slightly better than last week. In addition, in some parts of the south, 26 days earlier than in previous years, that is, after the flood season entered on March 6, the northern region officially entered the flood season on June 1. Flood season led to a significant decline in rigid demand, continuous rainstorm led to site construction difficulties, affecting the terminal state of mind to take goods, the transaction is expected to weaken.

In terms of flood season:

Guangdong: the rainy season is from April to September. Among them, June is the peak period of rainfall in Guangdong, and there are many opportunities for torrential rain in various parts of the country. At the same time, the high temperature stage of Guangdong is from June to October. It is predicted that this year's flood season will be one month earlier than in previous years. Since the beginning of this year, the rainfall in the Beijiang and Dongjiang river basins is three times that of the same period. Guangdong has overall more rainfall for the whole year.

Guangxi: the rainy season is from April to September. It is expected that in 2019, the precipitation concentration in eastern Guangxi will appear in May-June, and in western Guangxi from July to August, there is a greater possibility of torrential rain and flood. Compared with the same period of the previous flood season (April-June), the total precipitation forecast in most areas of northern Guangxi is 20% to 30% more, and the rest is 10% to 20% more. The total precipitation in the latter flood season (July-September) is predicted as follows: compared with the same period of the whole year, the total precipitation in western Guangxi and coastal areas is about 20% more, and that in eastern Guangxi is 10% to 30% less.

Jiangxi: the rainy season is from April to September, of which the water is concentrated from June to July, and rainstorm and torrential rain are easy to cause flood or waterlogging. The hot weather lasted 40 to 50 days. It is estimated that in 2019, the rainfall in the whole province is nearly 10% higher than that in the whole year, and the end of the main flood season may be too late.

Hunan Province: the rainy season is from March to July. Rain Water mainly appeared in May, June and early July, and there may be great floods in Zishui and the middle and lower reaches of Yuan River, Lishui and Dongting Lake area, and there may be phased drought in central Hunan and its south after the end of rainy season. It is estimated that 1 or 2 landfall typhoons will affect our province, and the degree of influence is too heavy.

Spot market:

Beijing market; today's price fell 30 to 40 yuan / ton, down 20 yuan / ton in the morning, quoted to 3880 yuan / ton, futures weakened, market sentiment is depressed, the afternoon continued to fall 20 to 30 yuan / ton, Hegang reported 3850 to 3860 yuan / ton, Linggang reported 3860 to 3870 yuan / tonn. the price is down 30 yuan / ton, 20 yuan / ton in the morning, 20 yuan / ton in the afternoon, 3850 yuan / ton in the afternoon and 3860 yuan / ton in the afternoon. It's a deal all day.

Shanghai market: spot price fell 20 to 30 yuan / ton, 3910 to 3920 yuan / ton in the morning, 3890 to 3900 yuan / ton in the afternoon, Hongtai quoted 3760 yuan / ton, the low price is OK.

Guangzhou market: cold steel resources fell 40 to 50 quotations 4030 to 4040 yuan / ton, days of torrential rain, demand release has been strongly suppressed, the transaction is not good. In addition, some traders react that the downstream tends to low price procurement, the current spot price of part of the thread even if the continuous decline but did not meet the expected price, a direct impact on the transaction situation.

Hangzhou market: spot price fell 30 yuan / ton, 20 yuan / ton Shagang quoted price 3990 yuan / ton in the morning, Zhongtian quoted price 3940 yuan / ton, the morning transaction is poor. Afternoon futures rebound driven, Shagang quoted 3980 to 4000 yuan / ton, Zhongtian 3920 yuan / ton. General transactions throughout the day, mainly wait-and-see, the spot price fell in the morning, the transaction is poor, a small rebound in the afternoon, the lower reaches missed the low price to continue to wait and see.

Nanchang market: today, spot prices fell 10 to 20 yuan / ton, 3880 to 3890 yuan / ton. The transaction is general throughout the day, according to SMM research, Nanchang market stability, the rainy season currently has little impact, the recent continuous inverted hanging state, inventory level remains stable, there is no accumulation phenomenon.

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