Weekly review of raw material market (April 13-April 19)

Last week, the domestic raw material market prices rose overall. The operating rate of blast furnaces in steel companies has increased, raw materials and fuels are generally in low inventory, and purchasing enthusiasm has increased slightly. The price of imported iron ore continues to rebound; the first round of increase in coke price has taken effect; the price of coking coal is stable and rising; in terms of ferroalloys, the price of ordinary alloy has increased overall, and the price of special alloy has fluctuated slightly. During this period, the price changes of each major variety were as follows:

Imported iron ore prices continue to rise

Last week, the price of imported iron ore continued to rise. The external fixed-price resource transactions of iron ore increased, the blast furnace operating rate of steel companies increased, the total demand for iron ore increased, and inventories at major ports turned from rising to falling. Because steel companies have already made profits based on current cost estimates, their enthusiasm for purchasing iron ore has increased, and the increase in iron ore prices has been significantly greater than that of finished steel. After iron ore prices rose sharply, traders were active in shipping. The production costs of steel companies have risen rapidly recently, and the resumption of production will be limited. However, as the demand for iron ore is still increasing, it is expected that iron ore prices will mainly rise with slight fluctuations in the near future.

Domestic metallurgical coke prices rise

Last week, domestic metallurgical coke prices rose. The price of metallurgical coke in coke enterprises in East China, North China, Northeast China and Northwest China increased by 100 yuan/ton to 110 yuan/ton; the price of metallurgical coke in ten-day fixed coke enterprises in southwest China was stable; the price of metallurgical coke in monthly fixed coke enterprises in central and southern regions was stable. Both demand and supply for metallurgical coke increased. Among them, the blast furnace operating rate of 200 steel companies increased by 0.78 percentage points, and the capacity utilization rate of 200 independent coke companies increased by 0.91 percentage points. The total inventory of coke industry chain enterprises decreased by 229,000 tons, a decrease of 3.57%; the coke inventory of 100 coke enterprises decreased by 107,000 tons, a decrease of 31.2%; the available days of coke inventory of 80 steel enterprises decreased by 0.4 days to 10.2 days. At present, a few coke companies in Inner Mongolia and Shanxi have sent letters to increase the second round of quotations, with the increase ranging from 100 yuan/ton to 110 yuan/ton. Steel companies are actively purchasing, while coke companies are in tight supply. It is expected that the second round of increase in coke prices will be implemented in the near future.

Domestic coking coal prices remain stable and rising

Last week, domestic coking coal prices rose steadily. Some coal mines in Changzhi and Linfen, Shanxi, currently do not offer quotations or accept orders for G80 low-sulfur coking coal. They mainly issue early orders. Some coal washing plants have low inventory and the quotation is 2,000 yuan/ton. The price of Shaanxi Zichang gas coal increased by 100 yuan/ton to 1,150 yuan/ton to 1,200 yuan/ton, the price of Huangling gas coal increased by 60 yuan/ton to 1,190 yuan/ton, and the price of Hancheng lean coal increased by 90 yuan/ton. to 1160 yuan/ton. Online bidding sentiment is high, prices have increased significantly, market sentiment has been significantly boosted, and some coal mines are reluctant to sell. Offline quotations in some coking coal markets have increased by 100 yuan/ton to 150 yuan/ton. Some coking companies are afraid of coal prices that have seen a large increase in prices, so they have started to wait and see after replenishing inventory appropriately. Coking coal prices are expected to rise steadily in the near future.

Prices of various ferroalloy varieties fluctuate slightly

Last week, the prices of various ferroalloy varieties fluctuated slightly. The price of ferrosilicon increased slightly by 80 yuan/ton to 100 yuan/ton. The purchase price of ferrosilicon by steel companies such as Nanjing Iron and Steel Co., Ltd. was 6,700 yuan/ton to 6,730 yuan/ton, which was 100 yuan/ton higher than the previous round of bidding prices. The price of raw material blue charcoal has increased by 40 yuan/ton, and production costs continue to rise. At present, the market price of resource prices has increased significantly, but the increase in bidding prices of steel companies has been slow to follow up. It is expected that the ferrosilicon market will operate stably to strong in the near future. In terms of silicomanganese, the price of silicomanganese in the north has increased significantly. On April 18, the Ulanqab Ferroalloy Association advocated that companies reduce production by 10% based on existing production capacity. The price of chemical coke rose by 180 yuan/ton, and the price of manganese ore rose by 0.5 yuan/ton degree to 1.5 yuan/ton degree. Manganese miners were reluctant to sell, and the production cost of silicomanganese increased by more than 150 yuan/ton. At present, the favorable factors for the silicomanganese market are increasing, but the pressure of high inventory is still there, and merchants are more cautious. It is expected that the silicomanganese market will operate stably to strong in the near future.

The price of high-carbon ferrochrome fell slightly by 50 yuan/50 basis tons to 100 yuan/50 basis tons. The bidding of steel companies is coming to an end, and the market demand is insufficient. The price of raw material chromium ore fell by 1 yuan/ton, but the price of chemical coke rose, and the overall cost of high-carbon ferrochrome production rose slightly. At present, high-carbon ferrochromium manufacturers mainly deliver orders from steel companies, and transactions in the retail market are average. It is expected that the high-carbon ferrochromium market will operate stably in the short term.

In terms of vanadium-based alloys, the price of vanadium-based alloys has increased by 1,000 yuan/ton. The bidding prices of vanadium-nitrogen alloys from steel companies such as Shaogang Iron and Steel, Yangchun New Steel, and Changjiang Iron and Steel are 117,000 yuan/ton to 119,000 yuan/ton. The price of 98 pieces of vanadium is stable, and holders are not willing to sell at low prices. Demand from downstream steel companies is slowly recovering, and the trading atmosphere in the vanadium alloy market has improved. It is necessary to pay attention to the stocking performance of steel companies before the May Day holiday. The vanadium alloy market is expected to fluctuate slightly in the near future. In terms of molybdenum alloys, the price of 60 ferromolybdenum first fell and then rose, with an overall increase of 2,000 yuan/ton. The bidding prices of steel companies such as Qingshan, Maanshan Iron and Steel, and Xiangtan Iron and Steel Co., Ltd. range from 212,000 yuan/ton to 219,800 yuan/ton. The price of 45%~47% grade molybdenum concentrate has increased by 50 yuan/ton. The price of molybdenum concentrate with a grade of over 50% in a Henan mine is 3,350 yuan/ton. The bulk market is reluctant to sell and is bullish. Before the May Day holiday, demand from downstream steel companies is strong, coupled with rising prices of raw materials shipped from mines, it is expected that vanadium alloys will operate stably to strong in the near future.