ince March, domestic steel prices have chosen to break upward again in late March after experiencing high-level shock adjustments. Specifically, as of March 26, what is the logic behind choosing an upward breakthrough after the recent fluctuations in steel prices? And what will happen next after the spot price of steel prices hit new highs? The sharp increase in billet prices in Tangshan under production restrictions is the direct fuse for the recent rise in steel prices. Tangshan billet stocks have been significantly depleted. This week, Tangshan’s main warehouses and ports have the same caliber billet stocks of 465,700 tons, a week-on-week drop of 253,900 tons. At present, Tangshan billet inventory has been at the lowest level over the same period. The increase in steel market demand and the accelerated digestion of inventories are a solid foundation for the recent rise of steel prices. Since mid-to-late March, the downstream peak season demand in the steel market has accelerated, and the demand for raw material purchases has been relatively strong. In terms of plates, the vigorous consumption of substrates, steel structure machinery, etc. directly downstream will continue to be maintained in the short-term, and possible changes in export tax rebate policies have led to an increase in plate exports, which has also led to the accelerated digestion of plate inventories in the near future.
Post time: Mar-29-2021