The fundamental pattern of weak steel market has not changed
Crude steel output is high, the market supply and demand contradictions still
In the middle of March, Steel Association member companies average daily output of crude steel 1667600 tons, down 0.47% mom; estimate the average daily output of 2063700 tons, a decline of 1%. The main reason for crude steel production chain micro drop, high prices of raw materials into the production chain, the downstream demand is expected, steel plant profitability weakened, part of plant maintenance scale. Data shows, up to March 22nd, the domestic steel market inventory society ended up 13 weeks, focus on market steel social inventory 10795100 tons, 1.4% lower than last week; wire social stock 3212000 tons, 4.78% less than last week. The focus of the National City building materials general inventory reduction of 314900 tons, to 14007100 tons, the varieties of social inventory 22081000 tons, an increase of 24.37%.
Overall, the current market demand slowdown, downstream start delay sign, even from the beginning of April, construction period, project needs to implement the market quantity are few, because the majority of engineering construction is drawing to a close. Before the rebound in steel prices makes the steel mills atcapacity, crude steel production increased significantly, but the market is not the first decline, or to continue to pressure the market outlook.
Raw material prices weak consolidation, rebound fatigue
After the sharp decline, recently imported ore market entered the consolidation state of weak, this week the tentative rebound, but the lack of real support, weak prices to rise, fall into dilemma. Due to the current profit margins have been seriously squeezed, some traders in this week choose to suspend the market quotation, mainly to wait and see. The steel sales are sluggish and raw material price fluctuation effect, large steel procurement prices will drop to low, but small and medium-sized steel enterprises still have replenishment requirements, the market turnover is not lukewarm not fire. The stock aspect, Chinese iron ore port Inventory (25 coastal port) 72590000 tons, 1430000 tons less than last year, a decline of 1.92%, the volume to reduce port stocks fell for four consecutive weeks. In addition, the outer traders in experienced substantial losses, strict control of spot inventory, so as not to increase the risk of. We expect the ore prices are still down space in the next period of time.
(editor
：admin)
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