Guangdong Kinen Sanitary Ware Industrial Co.,Ltd. , https://www.kinengroup.com
The domestic steel market remained in a slightly gloomy trend today, with transaction volumes showing a slight improvement compared to the previous day. Despite this, certain aspects still raised concerns. Market sentiment remains cautious, though it has gradually stabilized. Tight credit conditions have made businesses more flexible, but the overall liquidity remains constrained. The long-standing imbalance between supply and demand continues to create challenges. On the macro level, most stimulus efforts are still at the micro level, failing to address deeper issues. Recent positive news, such as relaxed property market policies and increased railway investment, may offer short-term relief, but their long-term impact remains uncertain. Looking ahead, there is hope for gradual improvement.
According to real-time monitoring of the steel e-commerce market, domestic steel prices remain weak and volatile today. Hot-rolled coils and plates maintained stable prices, while profiles and pipes saw a decline.
**Steel Prices Today:**
- **Rebar:**
On May 6th, the average price of 12mm HRB400 rebar was 3,494 yuan, down by 2 yuan from yesterday. The 20mm HRB400 rebar averaged 3,344 yuan, also down by 2 yuan. The 6.5mm HPB300 high line averaged 3,446 yuan, a decrease of 1 yuan, while the 8mm HPB300 high line averaged 3,436 yuan, down by 1 yuan.
- **Hot-Rolled Coils:**
The average price of 3.0mm hot-rolled coils stood at 3,511 yuan, down 1 yuan from yesterday. The 4.75mm coils remained flat at 3,445 yuan, while 5.75mm coils rose by 4 yuan to 3,417 yuan.
- **Plates:**
The 8mm Puzhong plate averaged 3,793 yuan, unchanged from yesterday. The 20mm standard Puzhong plate dropped by 1 yuan to 3,511 yuan, and the low-alloy 20mm heavy plate fell by 3 yuan to 3,670 yuan.
- **Profiles and Pipes:**
The 50*5 angle iron dropped by 8 yuan, the channel 16 fell by 7 yuan, and the I-beam 25 decreased by 6 yuan. The 1.5-inch*3.25 welded pipe fell by 4 yuan, while the 4-inch*3.75 welded pipe dropped by 8 yuan. The 108*4.5 seamless pipe remained steady, and the 219*6 seamless pipe also held its price.
**Price Adjustments:**
- **Rebar and Steel Products:**
Shanxi Licheng Taihang reduced rebar prices by 20 yuan, and plate screw prices fell by 30 yuan. Zhengzhou Special Steel lowered rebar factory prices by 40 yuan. Fujian Sanbao cut prices for HPB300 (Φ8–10mm), third-grade rebar, third-grade wire rod, fourth-grade rebar, and drawing products by 60 yuan. Fujian Sansteel Shuguang reduced high-grade and third-grade rebar factory prices by 80 yuan. Jiuquan Steel raised spiral screw prices by 30 yuan, while rebar prices remained stable. Jiuchuan Yinchuan Iron and Steel lowered both wire rod and rebar prices by 30 yuan. Shanxi Jianbang reduced coil and rebar factory prices by 10 yuan each. Anhui Changjiang Iron and Steel lowered coil and screw prices by 20 yuan.
- **Plates:**
Tiansteel announced new pricing policies on May 6th. From April 26th to May 5th, the settlement price for 16–20mm general boards was 3,375 yuan/ton, with an agreement volume discount of 50 yuan/ton. Nanjing Iron & Steel Group kept plate prices unchanged after adjustments on May 6th.
**Economic Indicators:**
- The final reading of China’s Manufacturing PMI for April came in at 48.1%, slightly below expectations of 48.4%. This marks a slight improvement from the March final reading of 48.0% and the initial estimate of 48.3%.
- The preliminary reading for April, released on May 5th, was 50.4%, up 0.1 percentage points from the previous month.
**Market Sentiment and Policy Response:**
Amid growing concerns, some online voices have warned of potential property market turbulence, citing examples like Guangzhou, Wenzhou, and Beijing. While these statements may be exaggerated, they reflect underlying anxieties. Local governments have started taking measures—explicit or implicit—to stabilize the market. While these actions are reasonable, their effectiveness remains uncertain.
Recent economic data from the first quarter indicates that China’s service sector is expected to meet the “12th Five-Year Plan†target earlier than anticipated. According to Guo Huaiying, an associate researcher at the National Development and Reform Commission, this is due to slower industrial growth and accelerated service sector development. Under the plan, the service sector's value-added should account for 47% of regional GDP by 2015, a 4 percentage point increase from 2010.