Wuhan steel market prices stabilized

With the arrival of gold, nine silver and ten, the steel market has shown signs of recovery. Yesterday, it was learned from Wuhan Iron and Steel Group that after four months of continuous downward adjustment of steel prices, Wugang's steel prices in October were selected in the same tone.

This year, the steel industry suffered a cold winter. From June to September, Wugang’s steel product prices “declined”, with the ex-factory price of hot-rolled products declining by 580 yuan/ton. From July to September, Baosteel also lowered steel prices for three consecutive months. This time, Wuhan Iron and Steel Company was the first to announce the October steel price in the national steel enterprises. Following this, Baosteel also introduced the price in October, and its mainstream product prices are all flat.

Jin Jiuyin 10 is the peak season for traditional steel sales. After the cumulative decline in steel prices, there is limited room for continued downward adjustment. Recently, the National Development and Reform Commission approved the approval of key infrastructure projects, and market confidence has increased.

In Zhuhaishan steel market in Wuhan, more than 20 steel trading companies mostly closed down and Wuhan New Haoqiu Steel Trading Co., Ltd. was one of the few who stood firm. Qiu Feng, the manager, said that this year, the company only entered more than 100 tons of steel per month, basically "zero inventory." Now is the peak season, ready to increase the purchase volume. According to statistics from the famous professional website “My Steel Net”, the local steel price in Wuhan has generally risen last week, ranging from RMB 110/t to RMB 120/t.

Will steel prices stabilize in the long term? Industry insiders are cautious and there is no obvious improvement in downstream demand for steel mills. It remains to be seen how steel prices will remain stable.

A person at Wuhan Iron and Steel Marketing Corporation stated that the infrastructure projects approved by the country for this time are mostly railways. The construction period is long, and the real need to form steel products is due early next year.