On the supply side, according to research, the output of large steel products this Friday was 1,46.22, a decrease of 12.05 inches on a week-on-week basis. Due to the sharp rise in iron ore prices, the profitability of steel mills has shrunk, especially since the northern steel mills have been on the verge of profit and loss, and the increase caused by maintenance and reduced production.
In terms of demand, the apparent consumption of major steel products this Friday was 1089.02, a decrease of 37.97 inches on a week-on-week basis. Affected by variable factors, end user demand has decreased. However, due to constant price fluctuations, speculative demand has improved and rebounded.
In terms of inventory, the total steel inventory this week was 1,353.75 length, a decrease of 42.8 seconds on a week-on-week basis. Shortened, affected by the influence of factors, the weekly decline of steel inventory narrowed. Instead, steel inventory increased by 14.3%, a decrease of 4.4 volumes from last week, and the pressure on high inventory was significantly eased.
In terms of cost, the prices of iron ore, coke, scrap steel and other raw materials have increased to varying degrees since December. In particular, the price of 61.5% PB fines at Jingtang Port was 1028 yuan/ton, which has gradually increased by 14.7% this month. Steel production costs may be as high as 4000-4100 yuan/ton.
On the whole, the supply and demand of the steel market was weak this week, and the speed of steel inventory de-allocation has declined, but the growth rate has dropped significantly for a period of time, and the high inventory pressure has been corrected. The contradiction between supply and demand in the steel market has not yet been highlighted. Coupled with the high prices of raw materials, short-term steel prices may be strong.
