Industry information
May will pass, June steel market is still available
【Time:2019-05-28 11:13】 【Traffic:

 Towards the end of May, taking Tangshan Alpine Line, Thread and Tropics as examples, the overall fluctuation range is not large, and it falls back in the first half of May, showing a slight upward trend in the second half of the month. Overall, demand has decreased this month, but supply pressure is not large. Tangshan implemented air control measures in May. Affected by this, blast furnace manufacturers have different degrees of overhaul. The overall start-up rate of steel mills is low, and inventory remains at a low level. With the arrival of the hot and rainy season, how about the market next month, and listen to Xiaobian from the following two aspects to analyze.




Raw materials



Affected by the environmental protection and production restriction in the early stage, the overhaul of blast furnace manufacturers increased, and the stock of billets slightly declined. In the later stage, with the return plan of blast furnace manufacturers, the stock rebounded. Up to submission, Tangshan Xiangyu Zhengfeng billet stock of 93,000 tons, 20,000 tons of billet into storage yesterday, and 0.3 million tons out of storage, Tangshan mainstream steel plant billet price early increase 10 yuan, after the rise, the direct transaction normal, traders price increase 20-30, warehousing spot reported 3700 yuan tax, the overall performance of downstream finished product delivery is flat, billet end still has some toughness.



Inventory aspects



According to the statistics of 23 days, 35 City screw 591.98 decreased by 10.8, wire rod 138.39 decreased by 8.62; thread mill warehouse 187.31 decreased by 9.71, wire mill warehouse 53.63 decreased by 3.63 (10,000 tons); according to the statistics of 16 days, 35 City screw 621.27 decreased by 36.00, wire rod 147.014 decreased by 9.03; thread mill warehouse 197.02 increased by 1.33, wire mill warehouse 57.26 increased by 0.09 (10,000 tons). Inventory decline slowed down and demand gradually weakened.



In a word, next month will enter the traditional off-season, with high temperature and rainy season and busy farming season, the downstream demand will be hindered, and with the later production of blast furnace inspection and repair, the supply side will increase, the contradiction between supply and demand will intensify, and the price of steel will be further negative. However, the raw material end is still resilient, not too pessimistic, it is recommended that businesses operate on demand.
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