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A weekly overview of the raw material market (October 24th to October 30th,2020)

Nov. 06, 2020

Last week, the prices of most raw materials rose steadily. Iron ore prices first fell and then rose. Some steel mills with low inventories may purchase them in the near future; coke prices are temporarily stable, and fundamentals are still relatively tight; coking coal market prices Stable and rising; ordinary alloy prices are mainly stable, and special alloy prices have fluctuated. The price changes of the main varieties are as follows:

A weekly overview of the raw material market (October 24th to October 30th,2020)

Imported iron ore prices fluctuate slightly

Last week, the imported iron ore market fluctuated slightly. It was relatively weak in the first half of the week and rebounded slightly in the second half. Under the expectation that the arrival of iron ore from major domestic ports is still large and the impact of the limited production of northern steel mills, the enthusiasm of steel mills to purchase is average, and iron ore prices have fallen slightly. In the second half of last week, some steel mills had rigid purchasing demands, and iron ore prices stopped falling and rising. In terms of the performance of various varieties, due to the high inventory of lump ore at the port, the transaction is still small, and the transaction volume of medium-grade fine ore and pellets is large. In addition, some relatively low-priced Indian powders are sold well. At present, steel mills have low expectations for the market outlook. Some steel mills have low inventories and have replenishment plans. It is expected that the market price of imported iron ore will stop falling in the short term, showing a slight upward trend.


Mainstream coke prices are stable

Last week, the mainstream domestic coke prices were stable. With the gradual implementation of the policy of reducing capacity in the coking industry in Shanxi Province, coking companies in East China and North China are bullish for the future; the coke market in Northeast China is operating smoothly, and the wagons in Heilongjiang are still tight; the price of the central and southern coking companies is under negotiation in November, and the increase is 80%. Around RMB/ton, it will be finalized in the near future; a few coke companies in Southwest China have raised their quotations by RMB 50/ton in the first half of November, and steel mills have not yet accepted it. Some coke companies in East China and North China plan to increase the price of metallurgical coke in the near future, but they have not officially notified the steel mills. They will formally send a letter in the near future. It is expected that the price of metallurgical coke in East China, North China, Northeast China and Southwest China will increase by 50 yuan/ton in the near future. The company raised the price of metallurgical coke by about 80 yuan/ton.


The price of coking coal has risen steadily

Last week, domestic coking coal prices rose steadily, most of which ranged from 10 yuan/ton to 50 yuan/ton. Coal sales were generally good, and some coal mines are still expected to increase prices. The price of some low-sulfur coking coal in Linfen, Shanxi has increased by 40 yuan/ton to 70 yuan/ton; the price of coking coal in some areas of Taiyuan has risen steadily by 20 yuan/ton to 30 yuan/ton. Some large mines in Shandong plan to increase the price of gas and coal by 60 yuan/ton for key households from November 1, and some downstream coking companies have received oral notifications. Industry insiders expect that domestic coking coal prices will rise steadily in the near future.


Ferroalloy market fluctuates slightly

Last week, the ferroalloy market fluctuated slightly. Among them, the prices of ferrosilicon, silicomanganese, and high-carbon ferrochromium were stable; the prices of vanadium series continued to decline, and the prices of ferromolybdenum rose slightly. Specifically:

Last week, ferrosilicon manufacturers were still arranging orders for production, and the Northwest large factory’s ordering cycle was until mid-November, mainly direct supply to steel mills. At present, most manufacturers have no inventory for the time being, and traders do not have much inventory, and ferrosilicon spot resources are tight. Industry insiders predict that the ferrosilicon market will operate steadily and strongly in the short term. The cost of silico-manganese companies that mainly purchase futures mines is upside down, and the silico-manganese companies that purchase spot mines are on the verge of profit and loss. Manufacturers are not willing to ship at low prices, but steel mills have not yet centralized bidding, and both supply and demand are deadlocked. The price of raw manganese ore dropped slightly, and the silico-manganese market is expected to operate steadily and weakly in the short term. Affected by the news that South Africa will impose export tariffs on chrome ore, the quotations of 40% to 42% of South African concentrates at ports have been raised. In addition, the price of raw coke has risen, and the cost of high-carbon ferrochrome has risen. The pressure on manufacturers is greater, but several iconic companies Major factories have not yet entered the bidding process and are mainly waiting and watching. It is expected that the high-carbon ferrochrome market will be stable in the short term.


Last week, the domestic vanadium series market prices continued to decline. It is difficult for long vanadium vanadium orders to hold prices, and actual transaction prices in the bulk cargo market have continued to decline. Most vanadium vanadium manufacturers expressed greater pressure; demand for ferro-vanadium is still weak, manufacturers are unstable, and they are under pressure to reduce prices; transactions in the vanadium-nitrogen alloy market are light. , Traders operated cautiously, the operating rate of alloy manufacturers dropped significantly, and the overall market performance was sluggish. At present, supply and demand in the vanadium market are difficult to balance, and business confidence is also insufficient. It is expected that vanadium series market prices will continue to fall in the near future. The domestic market price of ferromolybdenum rose slightly. Most ferromolybdenum manufacturers mainly produce by order, and the spot inventory in the factory is small. Some small ferromolybdenum manufacturers say that molybdenum concentrates are tight and it is difficult to purchase. However, at the same time, the pace of tendering by steel plants is slow. run.


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