Steel Market Price Forecast

On the supply side: This week, the output of the five major types of steel products was 9.4725 million tons, an increase of 151,400 tons week-on-week. Among them, the output of rebar was 2.9503 million tons, an increase of 128,600 tons week-on-week; the output of wire rod, hot-rolled coils, and cold-rolled coils increased slightly, and the output of medium and heavy plates decreased slightly.
In terms of inventory: This week, the total inventory of steel products was 23.1993 million tons, a decrease of 356,300 tons from the previous week, and the decline has expanded. Among them, the inventory of steel mills was 6.6761 million tons, a week-on-week decrease of 185,300 tons; the social inventory of steel products was 16.5232 million tons, a week-on-week decrease of 171,000 tons.
Affected by China's manufacturing PMI and construction industry data in February, which exceeded expectations, commercial housing transactions in first- and second-tier cities picked up and prices rose, and market confidence was boosted. The volatility is strong, and the focus should be on the sustainability of demand, and it is not appropriate to be overly bullish.