Let’s talk about the basic situation of the market from three aspects today.
1. First of all, we look at the supply side, the current steel inventories are in a high state, guaranteed cash flow is still mills a top priority, steel mills and coking plant are now at a loss of coking coal prices dropped significantly last week after coke now still has a tendency to fall again, if fall again will give a certain amount of steel mills profit space. Next we need to see whether there is a large area of production, production limit this phenomenon, if it will cause a certain support to steel prices, if not, there is still a certain pressure.
2. Demand side: At present, the downward pressure of the overall economy is still relatively large, and the epidemic has not been alleviated significantly in the whole country. Last week, the situation of repeated epidemic occurred in Tianjin and Beijing. Finally, it will take a period of time for the new construction area and construction intensity to improve. It is expected that the demand will not improve significantly next week.
3. Policy: management set the tone for the policy is steady growth, stabilize the market main body, protect jobs, is great in the tone under the premise of the current economic downward pressure, the greater the future to the positive economic policies to stimulate the stronger the will, the current we have already seen positive policy of real estate is constantly coming in. We have a good attitude about expectations.
On the whole. The current market is like the dark phase before dawn, although there are “glimmers of light”, but there are still “clouds cover the day”. Next week’s market as a whole to see steady weak trend.
Post time: Jun-10-2022