The supply and demand contradiction in the steel market is eased

On May 22, the national cold and hot rolled coil market prices were mainly stable, and the plate prices in the southwest region showed an obvious upward trend, with the average price rising by about 20 yuan / ton month-on-month.

From the perspective of demand, currently, downstream industries such as automobiles and home appliances have been fully resumed, and production and sales have improved compared with the first quarter. According to data from the China Association of Automobile Manufacturers, in April, as the domestic epidemic prevention and control situation gradually improved, the production and sales volume of the automotive industry continued to pick up. In April, automobile production and sales exceeded 2 million units, slightly higher than the same period last year. Among them, the decline in the production and sales of passenger vehicles has narrowed significantly, and the monthly production and sales of commercial vehicles have reached a record high.

In terms of cost, iron ore prices have risen sharply since the beginning of this year. According to data from the China Iron and Steel Association, on May 21, the forward spot CIF price of 65% grade Brazilian fines in Qingdao Port was US $ 112.03 / dry ton, up 0.73% from the previous day. In addition, the prices of raw materials such as coke and scrap steel are constantly rising, which has increased the production costs of steel mills and successively adjusted the ex-factory prices of steel products. For example, on May 18, Benxi Iron and Steel introduced a product price policy for June, and the ex-factory price of hot rolled coil increased by RMB 100 / ton on the basis of May. The steel mills have a strong willingness to push prices, and it is expected to curb the decline in the market price of cold and hot rolled coils to a certain extent.