Steel Market Analysis

The domestic steel market fluctuated and declined as a whole, among which the long products fell significantly.

The steel market has entered the off-season of demand, high temperature and rainy engineering construction is blocked, and the summer vacation of the manufacturing industry has increased, and the demand has decreased significantly; the weakness of steel futures is hard to change, hitting a new low since its listing in 2009; The price continued to fall; in the middle and late ten days, as the central bank lowered the reserve requirement ratio and fine-tuned stimulus policies, the good news on the macro level boosted steel prices, and the decline in the spot market slowed down. As of the 24th, the price of third-grade rebar in the market in Shandong Province was 3040-3060 yuan/ton, down 160 yuan/ton from the end of last month; the price of thick gauge hot coil was 3300-3350 yuan/ton, down 10 yuan/ton from the end of last month; The price of medium plates is 3340-3400 yuan/ton, down 40-50 yuan/ton from the end of last month; the price of small and medium-sized H-beams is 3080-3110 yuan/ton, and the price of ordinary large specifications is 3030-3060 yuan/ton, down 70-70 from the end of last month 100 yuan/ton; the price of 45# steel is 3360-3380 yuan/ton, down 90 yuan/ton from the end of last month.

Leading Indicators of Economic Operation

In May, the industrial added value and PMI rebounded slightly, and the year-on-year decline of PPI narrowed, but the real economy has yet to be confirmed out of the trough; the downward pressure on real estate is relatively large, and the growth rate of steel demand is slowing down, and it is difficult to improve in the later period; steel mills Profit improvement has led to an increase in resumption of production. Crude steel production hit a new high in early June, and supply pressure is still severe. Steel social inventory has declined for the sixteenth consecutive week, but the speed of destocking has slowed down; imported ore fell below the previous low, around $90 / ton fluctuates slightly; the leading steel mills are cautious about the market outlook, and the price is stable with a drop; it is expected that the domestic steel market will form a bottom form in July.