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[SMM Hot Volume] detailed explanation of the arrival of the goods here are all the mainstream market price trends you want.
May 6,2020 16:47CST
translation
Source:SMM
The content below was translated by Tencent automatically for reference.

SMM Iron and Steel, May 6, this week's mainstream market resources are expected to arrive 126000 tons, an increase of 37000 tons from last week.

Table 1: comparison of arrivals in mainstream markets

Source: SMM Steel

The increase in the volume of goods this week is mainly due to the continuous shipment of steel mill resources and the continuous accumulation of market arrivals in May Day, which is superimposed on the expected volume of goods delivered this week, so the arrival of goods in each market has increased to varying degrees. Among them,

 

Shanghai market: the recent arrival volume continues to be on the low side, the market supply pressure is less than the previous period. At the same time, the continued release of terminal demand has led to a continued decline in inventories in the market (with a small increase in inventories in Shanghai this week, mainly due to the closure of the market during the festival and the uninterrupted arrival of resources), spot prices have also rebounded. And because the arrival volume continues to be on the low side, the spot price of the market is supported, so it is expected that the spot price of the market is still on the strong side in the short term.

Figure 1: comparison between incoming Volume and spot Price in Shanghai Market

Source: SMM Steel

 

Lecong Market: although there has been an increase in arrivals this week, the overall volume has remained low, giving the market some breathing space. According to SMM, the recent port pressure situation in the market has basically alleviated, coupled with the continued recovery of demand, traders shipment smooth, market inventory pressure significantly alleviated. At the same time, under the support of less arrival, the current merchants are willing to offer a strong price, cherish the heart of sales gradually appear, so it is expected that the subsequent arrival of less goods, the spot price in the market will show an upward trend.

Figure 2: comparison of market volume and spot price

 

Source: SMM Steel

 

Tianjin market: the volume of goods in this market has risen for many weeks, reaching twice the average in recent weeks. Attention has been drawn to the risks of subsequent pressure on northern prices since April, a view that has so far remained unchanged, although it has not been evident on the back of northern demand. From the spot price trend of Lecong and Tianjin market in May, we can see the signs (as of May 6, Lecong hot roll 3400 yuan / ton, Tianjin 3350 yuan / ton), suppressed by the increase in supply, the Tianjin market gradually showed a weak upward trend. And subsequent northern prices are expected to be weaker than southern prices.

Figure 3: comparison between incoming Volume and spot Price in Tianjin Market

Source: SMM Steel

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