Construction steel price today 7/1: Slightly reduced, bar steel price is at 4,469 yuan/ton

2022 is expected to be the year the US steel industry sees normalization and is under downward pressure, due to higher output and shorter delivery times.

Steel prices fell slightly today

Steel price today delivered in May 2022 on the Shanghai Exchange fell 2 yuan to 4,469 yuan/ton at the time of the survey at 8 am (Vietnam time).

List of futures trading prices of some metals on the Shanghai Exchange (Unit: yuan/ton).

After a year in which US hot rolled coil (HRC) prices hit all-time highs, steel industry analysts are expecting 2022 to be a year of normalization and downward pressure due to higher output and Shorter delivery times, which improves deliverability to buyers.

“Our outlook for 2022 is to look for a positive normalization, particularly in spot valuations because of supply,” said Phil Gibbs, Equity Research Analyst at KeyBanc Capital Markets. has become more available”.

According to Platts valuation data, the US HRC price entering 2021 is close to an all-time high, reaching $1,009/st.

This price broke $1,000/st in the last week of 2020 and increased by 94% to an all-time high of $1,960/st by the end of September 2021.

The price erosion started in the third quarter of 2021, although the domestic spot HRC price remained supported above $1,900/st until mid-October 2021 before falling 24% from the peak in the months. end of 2021.

UBS analyst Andreas Bokkenheuser said in a recent interview with Platts: “The US steel market is currently in surplus, unlike it has been in deficit for over a year and a half, and that surplus is very likely. will increase next year.”

John Anton, IHS Markit's Director of Valuation and Purchasing, said he expected spot HRC prices to be significantly below the 2021 highs in 2022, when sheet prices will be three times higher than their levels. average over 10 years from 2010-2019.

However, while on a downward trend, US plate prices are still forecast to continue to rise in 2022 relative to the historical average.

“Price has been and will continue to decline sharply, but we still believe the annual average will be 75% above the average for that 10-year period,” he added.

Vietnambiz