On the 20th, the mainstream price of profiles rose slightly, with an increase of around 20-70. The increase in profile prices this time is mainly due to the increase in the prices of raw materials and the prices of finished products
In terms of cost, as of the afternoon of the 20th, Tangshan billet price was 3,100 yuan, an increase of 20 yuan from last Friday. According to SunSirs billet price charts, billet prices were on an upward trend last week (4.13-19).

The impact of rising raw material costs is transmitted to the prices of finished materials. In the case of rising raw material prices last week, due to the high stocks of steel mills in the market, although downstream demand began to recover, merchants were cautious in purchasing, so the prices of finished products were mainly stable As a result, the profits of steel rolling companies are relatively low. As far as channel steel and angle steel are concerned, coupled with the hype news of the blast furnace production restriction policy on the market last Friday, it is in line with the manufacturers' hopes of rising.

In terms of inventory, according to relevant data, on April 17, 2020, the Shanghai market profile warehouse conducted the same caliber survey and statistics. The angle channel steel inventory was 75,300 tons, a decrease of 27,700 tons from last week; the H-beam stock was 74,100 tons, which was Weekly reduction of 0.58 million tons. The decline in market inventory indicates that downstream demand continues to improve. At the same time, due to the decline in inventory, the steel resources in the market have decreased, and some specifications are in shortage.

In terms of supply and demand, on the 20th, the central bank lowered the quoted interest rate of the loan market, which is good for enterprises to resume production. The loose domestic monetary environment can effectively hedge the downside risks of steel. In the context of wide credit and high inventory, there are two key factors to achieve price increases: strong expectations and high consumption. Recently, the government has vigorously promoted infrastructure and housing construction projects, and some cities have eased restrictions on settlement. With the gradual increase in the construction rate of housing construction projects across the country, consumption has further strengthened, and the medium- and long-term steel trend is expected to improve. However, the overall global economy has been declining, and the export volume has been reduced. Domestic sales alone are the only reason for continued consumption. It is difficult to predict.

According to China Steel Association data, in March 2020, the key statistics of steel enterprises produced 55.314 million tons of steel, an increase of 0.92% year-on-year. From January to March, the key statistics steel companies produced a total of 164,400,700 tons of steel, a cumulative increase of 2.50% year-on-year, and the cumulative daily production of steel was 1,804,400 tons, a year-on-year increase of 1.37%. Steel production began to increase, steel supply resumed quickly, the process of destocking the market inventory was extended, and steel prices were still under pressure. The impact of the epidemic on steel consumption is real, and it is expected that it will eventually return to fundamentals. As far as the current situation is concerned, there are many negative factors.

In summary, the short-term cost support is strong. The market sentiment is general, traders are cautious about replenishing their inventory with high resources, and downstream purchases are more wait-and-see. In terms of supply and demand, the rapid growth of steel supply is not conducive to rising steel prices. The mid- to long-term consumer demand situation is difficult to solve the "near thirst." It is recommended that manufacturers plan to restrict steel production, and short-term profile prices are expected to fluctuate within a narrow range.

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