Although the surplus of steel mills has risen, the overall steel market has bottomed

by:ChangZeng     2021-02-20
With the downturn of the real estate industry, entering the midsummer, the off-season for steel is also coming. In the future, the newly started area of u200bu200bhouses will shrink significantly, and the steel market will continue to face the dilemma of selling. In addition, the growth rate of investment in real estate development and new start-ups has remained weak, and there is no hot manifestation of the peak season, which means that the demand for building materials will be restricted. The reduction in steel products inventory is difficult to offset the negative supply and demand. As of the 13th, the total inventory of five types of steel, rebar, hot-rolled coil, cold-rolled coil, Q345B angle steel, and medium and heavy plate was 13.65334 million tons, which has been reduced for 15 consecutive weeks, and the inventory has been reduced by 21.73% year-on-year. 'But because the absolute quantity of this inventory is still infinite, and there is no corresponding relationship with the rise and fall of steel prices, there is still a lack of inventory reduction to reverse the decline of steel.' The analyst said. In the later stage of the steel market quotation trend, the China Iron and Association judged that the oversupply situation in the steel market is still difficult to reverse, and the later steel prices will continue to be low. 'In May, the output value of crude steel products hit a new high for the year, and the export of steel also reached a new high. This alleviated China's imbalance of supply and demand from a side. At the same time, the sluggish spot trend is also a helpless move forcing more steel exports.' Analyst He Guowen believes that seasonal maintenance is the main reason for the reduction in production, steel mills automatically destock in order to wait for the cold season, and there is a time gap between the increase in surplus and the increase in production. “Although the surplus of steel mills increased, it mainly occurred in late April. mills usually draw up production plans at least one month in advance, so the output value has not been released in time.” Statistics from relevant organizations show that the quotations of cold-rolled steel sheets across the country continue to decline partially, with a decrease. At about 20 to 50 yuan per ton. The quotations of quality steel billets have bottomed out, the hot-rolling price is weak, and the industry lacks enthusiasm for trading and needs to be restricted. In an interview with the Herald reporter, another analyst stated that due to the negative factors in the upper, middle and lower reaches of the steel industry chain, the future prices of iron ore, rebar and other related types continued to plummet unilaterally. It is estimated that the market outlook will continue to decline. And widen the drop space. At the same time, in order to avoid danger, steel mills may once again face the problem of lowering quotations to promote transactions. At the end of May, among the eight major steel types monitored, the quotations of long products and hot-rolled steel plates all changed from rising to falling. The quotations of galvanized steel plates were the same as last month, and the quotations of cold-rolled thin plates and hot-rolled seamless pipes continued to decrease. In the meantime, the quotations of high-speed wire, rebar and angle steel decreased by 82 yuan/ton, 100 yuan/ton and 62 yuan/ton respectively, and medium and heavy plates, hot-rolled coils, cold-rolled sheets and seamless steel pipes decreased by 39 yuan/ton. Tons, 46 yuan/ton, 50 yuan/ton and 31 yuan/ton. Despite the pressure of sluggish needs and tightening of credit, the Herald reporter noted that the National Bureau of Statistics showed that the average daily output value of crude steel in China in May was 2,271,900 tons, a decrease of 1% from April. The total output value of crude steel was 70.43 million tons, a new high this year. http://www.q345bj.comu200bu200b
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