My Steel: The recent supply performance of mainstream varieties have increased marginally, especially with the price correction of raw materials, the profits of steel have been restored. However, when we viewed in the perspective of current factory warehouse aspect,the whole factory warehouses were still trended towards a slight increase mainly,it can be seen that the present transportation is still lacking, and obviously the recovery takes time for a period.In addition, due to the price dropped last week, the wait-and-see mood in the terminal market has increased,but considering that the overall inventory cost of the spot market is not low, and most of the social storage are in a downtrend, there is not much chance for continued chasing down in terms of resource pressure. In conclusion,we expect that the domestic steel market price may fluctuate within a narrow range this week (2022.5.16-5.20).
Han Weidong, Deputy General Manager of Youfa Group: In the first ten days of May, the crude steel output of key iron and steel enterprises decreased by 2.26% month-on-month, and the profitability of enterprises restrained the increase in steel output. In the first half of year, China's crude steel output fell by about 40 million tons year-on-year, while the overall the annual steel output is expected to drop by about 20 million tons, and the reduction in the first half of the year effectively hedged against the drop sharply in demand. The recent market price reduction is an effective decline,the price of strip steel has dropped by 500 yuan around from a high point, while coal, coke, ore, alloy, etc. have also declined at the same time. The loss of steel mills has improved, and steel production has also been suppressed. just wait for the national logistics and flow of people to run smoothly, then demand recovery, replenishment, rushing for construction period and other needs will come, there is no doubt that it will be like summer must come,relax and welcome the dawn!
Post time: May-16-2022