On the March 9th, the mainstream prices of profiles and hot coils steadily weakened, and some businesses have reduced prices and shipped

In terms of cost, according to SunSirs billet price monitoring, as shown in the figure below, last week (3.2-3.6) billet prices continued to rise from 3040 yuan / ton, to the morning 9th Tangshan billet offer 3090, an increase of 10 yuan over last Friday, an increase 1.64%, rising raw material prices have prompted steel companies to maintain more on-demand procurement of raw materials. Individuals have control over the arrival of goods. However, rising prices have resulted in falling prices of materials, which have squeezed the profit margins of steel mills. Willingness grows.

Market: The price of No. 9 snails is green, and the market sentiment is not high. Although traders in various places have started to resume work, due to the slow release of downstream demand, the overall market situation is weak. In the face of the current high steel inventory pressure, it is difficult for steel prices to rise rapidly; however, the downstream construction has begun, which has brought good expected support to steel, and steel prices will not fall sharply. At the same time, as the steel market inventory is still growing, in order to keep the capital running, traders will inevitably choose to reduce prices and stocks. Therefore, the operation will continue to keep the stocks down and ship back the funds. Only in this way can there be funds to connect to later resources, so late March may be the time when merchants are under the most pressure on funds.

Inventory: the market inventory is slowly recovering, and the pressure of steel inventory is transferred from the factory warehouse to the social warehouse. The turning point of the factory warehouse should appear. From the arrival situation, Beicai will continue to move south. The pressure at the port is still high. Steel plant inventory pressure has eased slightly, while the short-term logistics and manpower issues are still slower. Warehouse processing and outbound warehouses will gradually increase this week. Therefore, the inventory growth trend is expected to show a slight decline, but the total inventory will still Continue to accumulate, it is expected to reach the recent high in 2 weeks;

In summary, the cost-side support is obvious. High inventory pressure makes it difficult for steel prices to rise quickly in the short term, and the trend of improvement in the middle and late period will also support steel prices, which will not fall significantly. SunSirs data analyst believes that because the total inventory is still increasing, Manufacturers and traders have gradually increased the pressure on their capital. In order to withdraw funds, they will inevitably choose to reduce prices and ship. Most downstream companies will purchase on demand. Therefore, steel prices are under pressure. It is expected that profile and HRC prices will weaken and fluctuate in the short term.

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