Steel market has upside potential in April

Looking back at the steel market in March, the comprehensive price of steel has gone out of the "N" shape, the index has risen by 206 points, the thread and wire rod have risen by 197 and 207 points respectively, and the plate, hot-rolled, and cold-rolled have risen by 139 and 207 points respectively. 257 and 159 points. In the second quarter, the epidemic spread across the country and demand has been delayed. How will the steel market operate in April?

1. In terms of demand, most big coffees believe that demand can be expected in April. Recently, the "warm wind" in real estate has been blowing frequently, and the completion of real estate may become the strongest link in the real estate chain. Some of the big coffee’s group plans to purchase steel bars in April twice as much as in March, and some big construction companies such as China Construction and China Communications have learned that this year’s projects are more than in previous years, and the start of construction in the first quarter is not ideal, but There are still a large number of projects reserved for infrastructure. The good start in the second quarter, especially in April, is of great significance, because the metered payment will be recorded in the second quarter with a high probability, and things will be easy to do when the funds are sufficient.

2. In terms of supply, some big coffees mentioned that the profits of electric furnace plants are gradually repaired, and the production of coiled wires and small-sized thread resources may be relatively positive, but due to limited scrap steel resources, it may be difficult to increase the output in large quantities. Although there is not much pressure on sales at present, the settlement price of upstream companies is too high, and sometimes even upside down. In addition, the sales scope of the market has also been compressed and divided due to the impact of the epidemic, and it is necessary to adjust the business strategy to reduce the burden.

3. In terms of expectations, most big coffees believe that they are optimistic about the April market, and steel prices may have room for improvement. However, we must also pay attention to uncertain factors such as the control of the epidemic, changes in the international situation, and expectations of the Federal Reserve to raise interest rates.