Opinion from My steel : Last week, the domestic steel market prices have been running stronger. Although the overall performance of stock resources transactions last week is still acceptable, inventory continues to decline, but prices of most varieties have reached current highs, business fear of heights has increased, operating cash delivery will continue to increase. From last week's performance in the second half of the week, the current procurement terminal wait-and-see mood has gradually increased, considering the current high spot prices, procurement mentality is cautious. On the other hand, with the rising of steel billet price and the increase of stock cost, steel enterprises maintain a firm attitude towards the market, so even though the trading performance is slightly weak, there is limited space for price concessions. Comprehensive forecast, this week (2019.4.15-4.19) domestic steel market prices maybe shock operation.
Opinion from Tang and Song Iron and Steel Network : Later market concerns: 1. iron ore prices continued to rise to a new high in recent five years, also led to the price of other raw materials to rise, so higher costs to varying degree still have some support for steel prices. 2. With the end of production restriction in autumn and winter, the blast furnaces of steel enterprises all over the country have resumed production. According to the survey and statistics of the 100 index of our network, the start-up rate of the sample blast furnaces in the whole country is 89.34% per week, which is about to reach the last year's high, so the further release space of the blast furnace start-up rate in the later period may be limited. 3. After the festival, the stock consumption of steel enterprises and social stocks has maintained a relatively stable and good level. In addition to the current rising period of downstream construction sites, demand is expected to remain relatively good in the short term. However, we still need to pay attention to the rapid price increase and the slightly cautious downstream operation. Short-term in the absence of obvious contradictions between cost support and supply and demand, this week (2019.4.15-4.19) steel prices may be adjusted to high shocks.
Opinion from Han Weidong, deputy general manager of Youfa : newly announced new loans, social financing, M2, M1, etc. have increased substantially, and the trend of loose currency. A series of important data will be released this week, with economic estimates bottoming out, while in March steel production volumn is low. This week, social inventories continue to decline, and the market will continue to surge up. Relax your mood, continue to operate in a balanced way, and have a good cup of tea in your spare time.
Post time: Apr-15-2019