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SunSirs: Near the end of the month, merchants want to increase production, hot rolled coil prices may be reduced

May 28 2020 16:17:57     SunSirs (Molly)

On the 27th, profiles and hot coils operated in a narrow range, and some merchants had a price reduction shipment operation, with a decrease of 20-40 yuan.

In terms of cost, the billet price of Tangshan billet on the 27th was 3250, which was stable compared with yesterday. It is reported that due to the profit turnaround of steel mills recently, manufacturers' enthusiasm for production has risen sharply, and steel production capacity has increased significantly. Although market inventories are still declining, supply-side pressure is more obvious.

Market: On the 27th, the price of rebar steel fluctuated in green, the volume rose in the future, and the red price ended, indicating that some merchants have a strong willingness to take the price. However, the overall sentiment of the market is general, and the steel market inventory keeps decreasing, indicating that demand is gradually improving. However, due to the end of the month, in order to maintain their own capital flow, traders will prefer to cut prices and ship operations. According to the statistician, some merchants have stocks from previous years. In order to reduce the loss of upside-down shipments, the industry has recently been more concerned about the two sessions. The downstream companies are cautious in purchasing, wait-and-see operations are more, the market has more inquiries, fewer transaction orders, and the market The overall transaction situation is poor.

Supply and demand: According to the relevant data on the 27th, 36 warehouses in 13 cities in China were counted, and the volume of hot-rolled mainstream warehouses this week was 271,700 tons, a decrease of 0.68 million tons from last week. According to statistics, 20 steel mills in Tangshan sold 70,400 tons, an increase of 535% from the previous trading day, and an increase of 166% from the previous trading day. Among them, 6,400 were 1,400 tons, 7 were 3,1200 tons, and 7,800 were 7800 tons. On the supply side, steel mills have a strong enthusiasm for the production of steel, and the steel production growth is expected to be visible. However, due to the recent downstream purchases that supplement the warehouse on demand, it is difficult for the market to have substantial and continuous transactions. Resources have a cumulative trend. The pressure is prominent, and it is recommended that the steel plant arrange for the start of construction and maintenance.

In summary, SunSirs data division believes that the early rise in mineral prices is eye-catching, and representatives of the two sessions have mentioned it. In order to reduce the heat, it is expected to stabilize in the near future. The cost-side support tends to weaken, steel mills are actively producing, and steel output growth is too fast, which is not conducive to the continuous development of steel prices. The industry has recently paid more attention to the relevant industry policy news of the two associations, and most of the replenishment purchases have accumulated. And near the end of the month, merchants often have preferential shipping operations. The short-term profile and hot coil prices are expected to be weak and volatile.

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