SunSirs: Delay in downstream demand, lower prices for profiles and HRC
February 14 2020 10:19:31 SunSirs (Molly)
Affected by the environmental factors, the Spring Festival holiday was extended throughout the country, and local enterprises clearly delayed the resumption of work. In some areas, the construction industry resumed later than other industries, and manufacturing companies will also delay work. It can be foreseen that the start of steel consumption after the holiday will be significantly delayed.
The delayed consumption situation will further increase the total inventory of profiles and Hot rolled coil. Coupled with the fact that almost all city in Hubei are "closed", high-speed control in Liaoning, Shaanxi, Zhejiang and other places, steel transportation is bound to be greatly affected, and steel inventory pressure will accumulate to steel mills. In order to ease the pressure of their own inventory, steel mills are expected to reduce prices in the near future, and some steel mills may limit production and stop production.
Considering the current uncontrollable external environmental factors, the resumption time in some areas is temporarily uncertain. Coupled with the stagnation of terminal demand, causing recent panic in the spot market mentality, price drop phenomenon abound. The price has fallen sharply, and the market has lowered the price. As a result, the market as a whole has fallen. It is expected that the prices of profiles and hot rolled coils will be mainly stable in the short term.
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