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SunSirs: Profiles and hot coils rose slightly on May 18

May 26 2020 08:20:27     SunSirs (Molly)

1. Price Trend

On the 18th, the prices of profiles and hot coils rose slightly, with an increase of 80-140.

2. Factor analysis

In terms of cost, the billet price of Tangshan billet in early trading on the 18th was 3250 yuan / ton, an increase of 80 from last Friday, and the cost-end price was raised. To ensure their profit margins, steel mills actively followed up the operation, thereby driving the price of finished materials.

At the same time, Tangshan billet stock consumption is relatively fast, cost-end merchants are reluctant to take stock, and their willingness to control prices is firm.

According to the relevant data, at 8 a.m. on May 18, the main billet inventory data of Tangshan area is as follows: the inventory of Xiangyu Zhengfeng is 96,600 tons, a decrease of 0.111 million compared with yesterday. Haiyi Hongrun's inventory is 125,400 tons, a decrease of 13,300 tons from yesterday. The stock of Zhenxiang was 47,900 tons, a decrease of 2,000 tons from yesterday. The three stocks totaled 269,900 tons, a decrease of 26,600 tons from yesterday.

In terms of market, the early trading on the 18th started to fluctuate oscillatingly, superimposing the impact of steel mills' upswing, the futures rebar ran oscillating throughout the day, and market sentiment was further active. Although the recent infrastructure projects in the country have continued and the demand has continued to improve, due to the rapid rise in steel prices and the fear of downstream purchases, the merchants have more inquiries and fewer transactions. Waiting for the market outlook, the overall market transaction situation is general.

In terms of supply and demand, the epidemic situation is well controlled, downstream demand continues to improve, and market steel inventories continue to decline. At the same time, due to the improvement of downstream demand, steel mills' production enthusiasm has risen, and the steel market has seen both supply and demand fundamentals in the short term.

3. Market forecast

In summary, SunSirs statisticians believe that the cost support of steel is strong, and the rise in steel prices is in line with the expectations of market merchants. Coupled with the continued improvement of downstream demand, it is expected that the short-term prices of profiles and hot coils will fluctuate strongly.

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