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Steel Stock Down, Does Chinese the positive market trend coming
In the past month, under the influence of high inventory and Sino-US trade frictions, the steel sector fell rapidly, and the cumulative decline in stocks and futures prices exceeded 10%.
The data shows that the social steel stocks were reduced by 1.17 million tons in last week, which is the largest drop since 2013; the decline in stocks of steel mills also increased.In the stock and futures markets, steel assets have stabilized and stabilized. Insiders pointed out that this sector is expected to gradually stabilize the rebound.
Industry insiders believe that the domestic steel price drop in March was caused by multiple factors. In addition to the high inventory and market concerns caused by Sino-US trade frictions, the increase in supply and the pressure of long liquidity on liquidity provided opportunities for short positions. Relevant data show that in the second half of February, the daily average output of crude steel of key enterprises was 1,878,700 tons per day, which was the second highest output since 2017, much higher than last year 1.733 million tons per day; In addition, the operating rate of electric furnace steel was higher and the output of scrap steel was higher. Also increased significantly.
However, with the recent stabilization of steel prices, rebar futures transactions, positions did not appear significantly enlarged. Futures investors said that in the face of the “high road” in the previous high social inventory base, the current mainstream market has reservations about the price of steel at the bottom.