Main steel varieties market price shock consolidation, compared with last week, increased varieties have been reduced

According to the monitoring data, in the 16th week of 2022 in some parts of the domestic steel raw fuel and steel products 17 categories of 43 specifications (varieties) price changes are as follows: the main steel varieties market price shock consolidation, compared with last week, increased varieties have decreased, flat varieties have decreased, decreased varieties significantly. Among them, 10 varieties rose, down 6 from last week; 10 varieties remained unchanged, 6 fewer than last week; Twenty-three varieties fell, 12 more than last week. Domestic iron and steel raw material market shock consolidation, iron ore prices down 20-50 yuan, coke prices up 200 yuan, scrap prices to maintain a stable, billet prices down 20 yuan.
Downward pressure at present, given the current economy, intensify policy of steady growth, again again in time using the monetary policy tools such as drop must increase financial support for the real economy, also to maintain reasonable liquidity abundant, to improve the stability of the total credit growth, to promote project early fall to the ground, the early construction, early work, The 0.25 percentage point cut in the reserve requirement ratio for financial institutions on the same day will release about 530 billion yuan of long-term funds, and the “strong expectation” of steady growth will be strengthened. For the domestic steel market, although the steady growth of the “strong expectations” in increasing, but the downstream demand is still weak is also a reality, due to the repeated epidemic in many places and logistics transportation restrictions, both ends of the domestic steel market supply and demand have been affected.

From the perspective of supply side, the raw material transportation and ex-factory links of steel mills have been significantly affected, which also caused the release of capacity of steel mills is still limited, and the inventory of finished materials in the factory has picked up sharply again. From the demand side, affected by the epidemic in the early stage, the progress of the project slowed down significantly, but with the gradual recovery of logistics and transportation, the construction progress of the site began to improve, and the demand of the spot market gradually returned to normal. In the short term, the supply side is facing high cost game low profit, the demand side is facing strong expectations game weak reality, for spot merchants, confidence is important but transaction is more important, with the gradual release of demand side, the domestic steel market is expected to return to rise.

Post time: Apr-18-2022