JungleJackpotJingle| Price adjustment of Shanxi Zhongyang Steel Products: Rebar 3990 yuan/ton, market spot prices fluctuated upward

News summary

Macroeconomic policies continue to work hardJungleJackpotJingleInfrastructure construction is accelerating and fiscal revenue is improving. The prices of raw materials and finished products in the steel market have deviated, steel mills have increased production, and construction steel prices are expected to stabilize. On May 26, Shanxi Zhongyang rebar and others maintained their current prices, the base price of coil screws remained unchanged, and the high line was lowered. Scrap steel prices generally fell slightly, and the market predicts that spot prices will fluctuate strongly next week.

Newsletter text

[The macro policy environment is warmer to support the market] This week, the macro policy environment is generally warmer, which is reflected in the postponement of interest rate cuts, the stability of LPR, and the acceleration of national water network construction. At the same time, the financial department will speed up transfer payments to local governments, and the successive issuance of ultra-long-term special treasury bonds will gradually mature under the preparation work of the National Development and Reform Commission. [Analysis of Steel Market Status] Industry data analysis shows that my country's steel bar and wire rod output showed a month-on-month decline trend in April, while medium and thick wide band steel output showed a contrarian growth, which reflectsJungleJackpotJingleThe proportion of construction steel in total steel has declined. In addition, according to data from the China Steel Association, the average daily output of crude steel, pig iron and steel companies rebounded in mid-May, and corporate inventories increased month-on-month, indicating that steel mills will increase their motivation to increase production after profits are restored. [Update on steel prices and steel mill price adjustments this week] This week, the price of futures snails once rose, spot prices fluctuated upward, and steel mills continued to be strong. Shanxi Zhongyang adjusted the ex-factory prices of some products on May 26, but rebar maintained the base price of the previous period without adjustment. In addition, steel mills such as Lianyungang Yaxin in Jiangsu Province and Chengxing in Anhui Province have also adjusted the price of scrap steel. [Market Trend Forecast for Next Week] Looking forward to the coming week, the spot market is mixed, with prices of thread, hot coil, strip steel and other varieties generally rising. In terms of futures, the black system showed a pattern of strong shocks. Market analysis pointed out that the increase in policies to stabilize growth, the release of favorable real estate measures, the fiscal drive of ultra-long-term government bonds, and the expectation of interest rate cuts in June will all have a positive impact on the market. There is not much pressure on the supply side. Although the demand side is weakening, the overall spot price is expected to fluctuate and operate strongly.