steel market situation

Supply and demand situation:

This week’s domestic steel market situation in China: On the supply side, the supply of five major steel products this week was 9.1656 million tons, an increase of 141,500 tons, an increase of 1.6%. 

In terms of inventory, the total inventory of five major steel products this week was 23.8651 million tons, an increase of 339,600 tons or 1.4% week-on-week. Among the five major steel products, the plate varieties are leading the warehouse, and the overall accumulation speed is expected to slow down. Among them, the inventory of steel mills increased by 1.9%, and the social inventory increased by 1.3%. , the market mentality is cautious, and the enthusiasm for purchasing is limited, which makes the pace of factory distribution slow down slightly from the previous month.

In terms of consumption, the weekly consumption of five major varieties increased by 14.9% this week; among them, the consumption of building materials increased by 38.9% month-on-month, and the consumption of plank materials increased by 4.0% month-on-month.

Future expectations:

From a funFrom damental point of view, in terms of inventory, this week’s plates are expected to take the lead in destocking, and building materials are expected to encounter an inflection point next week to reduce inventory.

The inventory pressure of steel mills and the market is low, which has certain support for the market mentality; on the demand side, At present, the progress of the resumption of downstream projects is also steadily picking up. Although housing construction is troubled by funding and other issues and the labor service situation is relatively poor, the start of municipal infrastructure projects and the labor service situation have improved significantly, and the overall demand has recovered significantly month-on-month.

On the whole, the domestic macro market mentality is positive to a certain extent, coupled with the gradual improvement of fundamentals, the pressure on supply and storage is not strong, supporting market expectations, which in turn makes market prices fluctuat.

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