Everything in China steel market will develop towards the good

With the unblocking of Wuhan, the epidemic situation in China has been effectively controlled, and the resumption of production and production is gradually progressing. It is expected that domestic market demand will gradually recover. Since the development of the epidemic, China's steel industry has been greatly affected, and the export problem is particularly prominent, but the foreign epidemic has not improved significantly. As of today: the world's epidemic is approaching 3 million, and the four most severe countries in the United States, Spain, Italy, and France, It accounts for more than half of the world ’s infections. In general, the recent global economic situation is complicated, and China's economic development is facing unprecedented challenges.

The market is fully resumed, and demand is still to be released

According to Mysteel's survey statistics: As of today, the steel market has basically resumed work. After the outbreak, the market price dropped to freezing point, and the demand has gradually recovered from now, and a qualitative leap has been achieved. The operation of the industry in the first quarter shows that the steel industry has withstood the test of the epidemic and has the ability to resist the current risks. As China actively expands effective investment, strengthens traditional infrastructure and "new infrastructure" investment, promotes the transformation and upgrading of traditional industries, or will accelerate the recovery of domestic steel demand. Although the market demand has exceeded the stock of steel mills, the stock of trader warehouses is still at a high level. Overall, domestic demand in China is still to be released.

Futures are approaching settlement, and prices have not increased significantly

Futures, as the name implies, reflect the future market price. As the contract settlement date of the end of the market is approaching, the settlement price of the futures 04 contract is the closest to the market transaction price, because the end of the month is about to be delivered (means when the futures contract expires, according to the rules and procedures of the futures exchange , The two parties to the transaction concluded the process of closing the contract at the end of the expiration by transferring the ownership of the commodity contained in the futures contract.), As can be seen from the following figure: The price of rebar and hot-rolled coils has continued to decline overall as of this year so far. The price dropped from the highest point at the beginning of the year 3738 to 3094, and the hot rolled coil fell from 3674 to 3154. According to the author, the average price of rebar in the Shanghai market is about 3450 yuan / ton, and the price of hot rolled coil is about 3300 yuan / ton, which is much higher than the futures delivery price. Therefore, it is expected that the steel market price will still fall to a certain extent.