Macroscopic aspect: The State Council’s audit found issues such as illegal reselling of bulk commodities. The State Council has set up a special investigation team, no matter what unit or level is involved, it must be investigated to the end and held accountable.
News: From July 14th to July 17th, the special inspection team of national iron and steel reduction of capacity "looks back" carried out supervision work on various steel plants in Anhui. It is reported that the field inspections are divided into three groups. The first group inspects enterprises in Tongling, Wuhu, Xuancheng, and Hefei; the second group inspects enterprises in Maanshan, Chuzhou, Bengbu, Suzhou, and Huaibei; and the third group inspects enterprises in Fuyang, Huainan, and Huainan. Enterprises in Lu'an and Chizhou conducted inspections. At present, it is still in the review stage, and no clear instructions have been given to the production restrictions of various enterprises. Our website will continue to follow up and report on the follow-up impact.
According to the latest statistics from the Bureau of Statistics, in June, the country’s daily average crude steel output was 3,129,300 tons, a decrease of 2.5% from the previous month, and a marked decline for two consecutive months.
On the supply side: According to Mysteel's research, the output of large-variety steel products was 10.683 million tons this Friday, an increase of 191,900 tons on a week-on-week basis.
In terms of demand: the apparent consumption of large varieties of steel this Friday was 10.77228 million tons, an increase of 401,000 tons on a week-on-week basis.
In terms of inventory: this week’s total steel inventory was 21.567 million tons, a decrease of 89,000 tons on a week-on-week basis. Among them, the steel mill inventory was 6,315,600 tons, a decrease of 243,100 tons on a week-on-week basis; the social steel inventory was 15,252,100 tons, an increase of 154,100 tons on a week-on-week basis.
Considering that the regulatory authorities are strictly investigating issues such as illegal reselling of bulk commodities, speculative demand in the later period may cool down, and the volume of steel transactions may decline. At the same time, the profit of steel mills has improved, but the overall efficiency is still low, and output fluctuations are not large. The short-term steel price is expected to fluctuate at a high level.
