Steel Bussiness Weekly Market Commentary [May 30-Jun 3, 2022]

My Steel: Recently there were many frequent macro positive news, but the policy needs to be fermented in a period of time from its introduction, implementation to actual impact, and considering the current poor downstream demand, the profit of steel mills has been tightened.The superimposed coke has continued to rise and fall,and the economic benefits of scrap steel are not good.The all sentiment of steel mills is not high, and market confidence is weakened again. In the short term, the price of scrap steel will operate under pressure go on. 

Han Weidong(Deputy General Manager of Youfa Group): When doing spot business, you must be forward-looking in terms of risks and opportunities, and you must have time to operate. The winter storage that before the Spring Festival this year was planned in advance. The risk message of this fall was published in a short article on March 27th,and the chance of this shock bottoming out, was also prompted in advance. Before the Spring Festival, we said that if you miss the winter storage, then you will miss the spring and the first half of the year. And this low-cost opportunity, if you miss it, you can only wait for winter storage again. No matter how bad the market is, we must actively plan and work hard to fight for it. Since entering May, our sales volume has increased significantly month-on-month and year-on-year. In addition to our efforts, it also shows that the domestic demand for China's steel market is not that bad,its toughness is good in fact. Our daily crude steel production is pretty high, and the economy is so difficult for the time being,the total inventory is still declining. Does that not explain the problem? June is approaching,June is a transition month for the flow of people, logistics, and economic activities to resume. July and August are the time for comprehensive recovery and growth,these months are our good opportunities.The State Council's 10,000-person meeting proposed that the economy will maintain positive growth in the second quarter,now we can calculate the lowest growth rate in the second half of the year already. This is the confidence that we are full of hope for the future! The current market price is still at the lower edge of the shock stage in the near fututue, and it will recover to the upper edge gradually,so be patient. I used to think that I should drink black tea in the morning, but now I found that West Lake Longjing is the best choice, relax, good morning!


Post time: May-30-2022