Industry News

[Explanation of Steel Industry Numbers] Consumption of sheet material expresses favorable building materials in a short period of time

On the supply side, the supply of five major steel products this week was 9.3258 million tons, a decrease of 41,400 tons, or 0.4%. The supply of five major steel products continued the downward trend this week. The main reasons for the reduction are limited production, off-peak production, poor profitability, and product structure adjustments.

In terms of inventory, the total inventory of five major steel products this week was 16.1898 million tons, a week-on-week increase of 179,100 tons, an increase of 1.1%. Inventory continued to increase this week, which is obviously related to factors such as poor demand performance in the off-season, slow procurement pace, extended delivery cycle, and low willingness to stock up.

In terms of consumption, the weekly consumption of five major varieties fell by 0.2% this week; among them, the consumption of building materials decreased by 0.6% from the previous month, and the consumption of plank materials increased by 0.2% from the previous month. Except for rebar and cold-rolled steel, the apparent consumption of other varieties this week is relatively stable month-on-month, and the short-term plate consumption performance will continue to be better than that of building materials.

With regard to the influence of factors such as "crude steel level control" news at this stage, staggered production peaks, and mid-year routine inspections, the proportion of temporary maintenance/production reductions has increased dynamically, and the overall supply level has limited room for growth, which in turn makes the off-season stockpiles have a negative impact on market confidence. Repression was partially relieved. In addition, under the premise of limited supply increments, the accumulation of warehouses in the off-season may be lower than expected, and the regularity of superimposed demand will weaken, and the overall fundamental pressure of steel products may be lower than expected. On the whole, although the news of level control has spread, it will take time to actually realize it. In addition, at this stage, the interweaving of long and short factors has exacerbated the fluctuation of steel prices, and the trend of ups and downs is difficult to understand, and steel prices continue to fluctuate.

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