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The domestic steel market remained in a slightly gloomy state today, with transaction volumes showing a slight improvement compared to the previous day. Despite this, there were still red flags in certain aspects of the market. Business sentiment remains pessimistic but has gradually stabilized, and tighter credit conditions have made companies more flexible. However, liquidity issues continue to create friction in the market. The long-standing imbalance between supply and demand in the steel sector remains unresolved, making it even more challenging. On the macro level, most policies are focused on micro-level stimulus, which is not enough to fully address the underlying issues. Recent news about potential easing in the property market and increased railway investment may bring short-term positive effects, but these benefits are yet to materialize. Still, they offer some hope for the future.
According to real-time monitoring from steel e-commerce platforms, today’s steel prices showed weakness and volatility. Hot-rolled coils and plates remained relatively stable, while prices for profiles and pipes declined slightly.
**Construction Steel Prices:**
On May 6th, the average price of 12mm HRB400 rebar in the domestic market 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, and the 8mm HPB300 high line averaged 3,436 yuan, down by 1 yuan as well.
**Hot-Rolled Coils:**
In major hot-rolling markets, the average price of 3.0mm hot-rolled coils stood at 3,511 yuan, down by 1 yuan. The 4.75mm hot-rolled coil remained flat at 3,445 yuan, while the 5.75mm hot-rolled coil rose by 4 yuan to 3,417 yuan.
**Plates:**
In the medium plate market, the 8mm Puzhong plate averaged 3,793 yuan, unchanged from the previous day. The 20mm standard Puzhong plate fell by 1 yuan to 3,511 yuan, and the low-alloy 20mm heavy plate dropped by 3 yuan to 3,670 yuan.
**Profiles and Pipes:**
The average price of 50*5 angle iron decreased by 8 yuan, while the 16-channel beam fell by 7 yuan. The I-beam 25 dropped by 6 yuan. The 1.5-inch * 3.25 welded pipe saw a 4-yuan decline, and the 4-inch * 3.75 welded pipe fell by 8 yuan. The 108 * 4.5 seamless pipe remained stable, as did the 219 * 6 seamless pipe.
**Price Adjustments:**
Several steel producers announced price adjustments. Shanxi Licheng Taihang reduced rebar prices by 20 yuan and plate screw prices by 30 yuan. Zhengzhou Special Steel cut rebar factory prices by 40 yuan. Fujian Sanbao reduced prices for HPB300 (Φ8-10mm), third-grade rebar, third-grade round bars, and fourth-grade rebar by 60 yuan. Fujian Sansteel Shuguang lowered high-grade and third-grade rebar factory prices by 80 yuan. Jiuquan Steel's branch raised spiral bar prices by 30 yuan, while rebar prices remained stable. Jiuchuan Yinchuan Iron and Steel Co., Ltd. reduced wire rod and rebar prices by 30 yuan each. Shanxi Jianbang cut coil and rebar factory prices by 10 yuan. Anhui Changjiang Iron and Steel Co., Ltd. and screw factory prices dropped by 20 yuan.
**Plate Price Policy:**
Tiansteel introduced its pricing policy on May 6th. From April 26th to May 5th, the new plant's 16–20mm general board settlement price was set at 3,375 yuan/ton, with an agreement volume discount of 50 yuan/ton. Nanjing Iron & Steel Group adjusted plate ex-factory prices on May 6th and kept them unchanged.
**Market Outlook:**
Today, the central bank conducted a 60 billion yuan open market repurchase for 28 days. Primary dealers reported 14-day and 28-day positive repos, as well as 7-day and 14-day reverse repos, along with 3-month central bank demand. This week (May 5–9), only 60 billion yuan is due for repurchase, significantly less than last week. On May 6th, 16 billion yuan will expire, and on May 8th, 44 billion yuan will mature.
**PMI Data:**
The final reading of China’s Manufacturing PMI for April was 48.1%, slightly below the expected 48.4%. The initial reading was 48.3%, and the March final was 48.0%. At the start of this month, the April PMI released by the China Federation of Logistics and Purchasing Federation and the National Bureau of Statistics was 50.4%, up by 0.1 percentage points from the previous month.
**Market Sentiment:**
Online discussions have been circulating about "air strikes in full swing" and claims that the property market will face the "most violent bombing." Cities like Guangzhou, Wenzhou, and Beijing have been labeled as "lost," "ruins," and "fired," respectively. While such statements may be exaggerated, they reflect growing concerns. In response, local governments have begun implementing various measures—explicit or implicit—to stabilize the market. While these actions are reasonable, their effectiveness remains uncertain.
**Economic Trends:**
First-quarter economic data indicate that China’s "12th Five-Year Plan" service industry goals may be achieved ahead of schedule. According to Guo Huaiying, an associate researcher at the National Development and Reform Commission, this is largely due to slower industrial growth and accelerated service sector development. Under the "12th Five-Year Plan," the value-added of the service industry in 2015 was expected to account for 47% of regional GDP, a 4 percentage point increase from 2010.