coinmasterfree| Construction steel: The Beijing-Tianjin-Hebei market bottomed out and rebounded in April, and the "off-season is not weak" may continue in May

(Zhuochuang Information analyst Gu Hongxuan)

[introduction] the recovery of construction steel market in Beijing, Tianjin and Hebei in April, the recovery of downstream demand and the control of supply side are the main factors leading to the price rise. It is expected that the price of construction steel will be strong first and then weak in May.

Market prices in Beijing, Tianjin and Hebei picked up in April

After experiencing a relatively depressed market in March and bottoming out in market prices, the Beijing-Tianjin-Hebei construction steel market picked up in April. According to Zhuochuang data, the monthly average price in the Beijing-Tianjin-Hebei five-year market was 3615 in April.Coinmasterfree.55 yuan / ton, up 35.26 yuan / ton, or 0.98%, over March. From the point of view of the price, each market rose 280-300 yuan / ton at the end of April compared with the end of March, the rising trend is obvious, and the price level is higher. The upward momentum provided by the main downstream demand has fallen on the supply side.

Consumption in the lower reaches gradually recovers, and the demand drive is obvious.

In March, due to the lack of timely delivery of downstream funds, less actual construction, and the failure of demand to recover as scheduled, market prices continued to fall. in April, the downstream demand situation was significantly improved, driving up market prices. Take the Beijing market as an example, according to Zhuangchuang information data, the monthly average turnover of construction steel in Beijing in April was 11960 tons, an increase of 5400 tons, or 82.69%, over March, and shipments increased significantly. The increase in demand is mainly due to the gradual arrival of site funds in April, the actual need for construction at the terminal, and the gradual reversal of the market mentality from pessimism, a boost to confidence, an increase in market activity, an increase in trading behavior, and an increase in downstream consumption, providing a driving force for market prices.

Steel plant overhaul and production reduction, supply side pressure relieved

After realizing the weak situation of downstream demand, in late March, various market players responded. Steel mills on the supply side basically took similar measures, such as closing production lines and tilting molten iron to other kinds of finished products.CoinmasterfreeOr adopt unsaturated production strategy to alleviate the contradiction between supply and demand. According to Zhuochuang statistics, the output of Beijing-Tianjin-Hebei local steel mills in April was 909000 tons, down 51000 tons or 5.31% from March. In the case of the reduction of resources in steel mills, the main purpose of local transactions is to digest inventory, and the speed of inventory elimination is ideal. In some markets, due to fewer shipments of steel mills, there is a shortage of specifications, businesses are reluctant to lower out, supporting rising prices in April.

The off-season is not weak, and it is expected that the price of construction steel in Beijing, Tianjin and Hebei may be strong first and then weak in May.

The main factors affecting the operation of the Beijing-Tianjin-Hebei market in May are the change of demand and the resumption of production of steel mills. It is expected that the price of construction steel in the Beijing-Tianjin-Hebei market may be strong first and then weak.

Demand: continue at the previous level and decline at the end of the month

At present, the sustainability of downstream procurement is good, and the turnover of traders in various places has maintained a relatively stable level, which is expected to continue at a stable level in May. However, with the passage of time, at the end of May, demand may gradually weaken, gradually entering the off-season, and the driving effect on local market prices will decline.

Supply: local steel mills gradually resume production, production is expected to increase

With the improvement of the Beijing-Tianjin-Hebei market in April, the profit level of steel mills has been gradually repaired, the enthusiasm of production has been improved, and some steel mills have plans to resume production. According to Zhuochuang information research, A steel plant plans to change from previous shutdown to intermittent production of one bar and one line; B steel plant plans to reopen thread rolling line, which will last at least half a month; and C steel plant plans to change from unsaturated production to full production, so output is expected to increase in May, putting some pressure on prices.

Generally speaking, with the change of downstream demand and the increase of steel production in May, the market price of construction steel in Beijing, Tianjin and Hebei may show a trend of strong at first and then weak.