Newsletter summary
At the end of April, the inventory of cold rolled coil in 29 cities across the country decreased by 2.Baccarat66.10000 tonsBaccarat66The market supply and demand has improved, but the pressure remains. The base price of electroplated tin products of Baoshan, Meishan and WISCO has been raised by 200 yuan / ton, and the fluctuation of cold rolling price is limited under the support of cost. In May, the cold heading products of Xiangtan Iron and Steel Co., Ltd. rose by 50 yuan / ton, and the base price of medium and heavy plate of Puyang Iron and Steel Co., Ltd. was 3670 yuan / ton. Us job growth slowed in April and the unemployment rate rose to 3.9 per cent, but remained nervous. Federal Reserve Governor Bowman expects interest rates to remain at current levels and inflationary pressures unabated. The inventory warning index of car dealers in China in April was 59.4 per cent, and the number of second-hand housing websites in Shenzhen was 5094, up 36 per cent from a year earlier. The steel market has a strong festive atmosphere, and the finished product price or shock adjustment. May steel inventory is expected to go to the warehouse, but the demand increment is insufficient, if the later supply exceeds the demand, the price or pullback.
Text of news flash
[the base price of tin plating in Baoshan base has been raised by 200 yuan / ton] by the end of April, the inventory of cold-rolled coil in 29 cities across the country has been continuously removed, and the relationship between supply and demand in the current market has improved, but the pressure remains.
According to Fubao Iron and Steel Research, inventories in East China fell to 1.1892 million tons, Central China 44200 tons, South China 649200 tons, Southwest China 237400 tons, North China 148900 tons, Northwest China 58 million tons and Northeast China 42,900 tons. the country's total was 2,369,800 tons, a decrease of 20,100 tons compared with last week.
In terms of price adjustment in steel mills, the base price of tin plating in Baoshan base has been raised by 200 yuan / ton, while the base price of chromium plating has remained unchanged. Meishan, WINSteel tin plating base price also increased 200 yuan / ton. In addition, the price of cold heading, hard wire, B steel and welding wire in the ten-day bid of Xiangtan Iron and Steel Co., Ltd. all increased by 50 yuan.
The locking policy for medium and heavy plates of Puyang Iron and Steel has also been adjusted, in which the spot base price of inventory is 3670 yuan / ton, the carbon price increase specification, manganese plate, fixed rolling and variety steel base price is 3800 yuan / ton, and the non-price increase specification base price of general carbon is 3830 yuan / ton. the base price of wear-resistant steel is 3700 yuan / ton.
In terms of macro hotspots, US job growth slowed in April and the unemployment rate rose to 3.9 per cent, but financial markets continued to expect the Fed to start its easing cycle in September. At the same time, the inventory early warning index of Chinese car dealers is 59.4%, which is above the rise and fall line, and the automobile circulation industry is in a depressed range.
In the spot dynamics, due to the impact of the holiday, the enthusiasm of the business operation is not high, the market trading atmosphere is deserted. Steel prices fluctuate, profits have not broadened. It is expected that the steel inventory in May will still be dominated by destocking, the supply side will resume production slightly, the demand will recover slowly but the increment is insufficient, and the contradiction between supply and demand in the short term is not yet prominent.
Looking forward to May, the macro mood remains good, the disk fluctuates at a high level, and the upward power is insufficient. In the later stage, if the supply increment exceeds the demand, there is a possibility of a pullback, but with the acceleration of bond issuance, the improvement of the marginal demand and the easing of steel inventory pressure, the pullback is likely to be difficult to return to the March low.