At present, due to the influence of multiple factors, the downward pressure on the domestic economy has increased

At present, due to the influence of multiple factors, the domestic economy downward pressure increased, steady growth policies are overweight, May 23, held a meeting to further deployment of steady economic package, a batch of new development water conservancy especially large-scale water diversion irrigation, transportation, old village transformation, such as comprehensive underground pipeline corridor project, guide the bank scale long-term loans, We will support the issuance of 300 billion yuan in railway construction bonds. On May 25, The General Office of the State Council issued the Opinions on Further Revitalizing Existing Assets and Expanding Effective Investment. It pointed out that effectively revitalizing existing assets will form a virtuous cycle between existing assets and new investment. It is of great significance to improve the level of infrastructure operation and management, broaden the channels of social investment, rationally expand effective investment, reduce the risk of government debt and reduce the debt level of enterprises. On May 26, 69.91 billion yuan was budgeted for the 2022 government-subsidized housing project in urban areas. The continuous promotion of these major projects and the development of diversified financing channels for project funds will effectively solve the poor situation of the existing project funds. For the domestic steel market, steady growth of strong expectations still exist, but due to the impact of seasonal factors, the domestic steel market is gradually turning into the traditional low demand season.

From the point of view of the supply side, as a result of the coke price for four consecutive “rise and fall” and the continuous decline of finished materials, iron and steel production enterprise loss is more obvious, the maintenance of steel mills and production is increasing, short-term supply pressure will be alleviated. From the point of view of demand side, although the resumption of work and production is constantly advancing, due to the influence of seasonal weather, the northern market will face high temperature weather, while the southern market will face the influence of the rainy season, the progress of the project is slowing down again, the social inventory of steel is slowly destocking, and the purchase demand of the spot market is insufficient. In the short term, although the domestic steel market is facing the reality of weak demand in the off-season and the impact of obviously weaker cost support, the market confidence has been restored under the drive of the steady growth policy and the gradually effective control of the epidemic.

Post time: May-30-2022