This cycle after the sharp drop in the spot market price after the early fall

This cycle after the sharp drop in the spot market price after the early fall, the main varieties of steel prices are low by phases, steel mills small profits or losses, the profits have narrowed the coal, iron and steel market high price risk has been fully released, the market a fear of heights mood disappeared basically, traders bottom low confidence. With Beijing, tianjin outbreak or a significant improvement in the near future, Shanghai “the plague” into return to work and production stage, at the same time transportation condition improved, end users to return to work and production increase, the construction schedule or speed up, such as Yangtze river delta region processing manufacturing steel demand or rebounded, inventory demand for end users and low price, the middle trade speculative demand or have obvious growth, Market turnover picked up gradually. On the supply side, after the price of raw fuel is greatly reduced, the power of long process steel enterprises to increase production is not reduced, and the blast furnace starts or continues to remain high. Short process steel profits or gradual improvement, but production line operating rate is difficult to grow, overall steel output continues to be high and stable. Coil, belt and other varieties of output or improved, rebar output or low stability. Main varieties of social inventory, total inventory will be reduced, the overall inventory decline has expanded. However, the epidemic is still in the prevention and control stage in many parts of the country. Shanghai and other key epidemic areas are in the process of resuming work and production, reaching production and full production. Beijing and Tianjin are in the critical period of the epidemic. And promote economic development, policies introduced gradually, to the good mood or reignite demand expected, combined with the current steel prices are low by phases, the space of the original fuel prices gradually narrowed, supporting function in the steel mills cost gradually increase, expected strong demand and high cost or support stage the main factors of rising steel prices. A variety of factors to contend with steel city or shock adjustment.

Post time: May-24-2022