WEEKLY STEEL PIPE MARKET ANALYSIS FROM YOUFA GROUP [MAY 9-MAY 13, 2022]

WEEKLY STEEL PIPE MARKET ANALYSIS FROM YOUFA GROUP [MAY 9-MAY 13, 2022]

Summary

WEEKLY STEEL PIPE MARKET ANALYSIS FROM YOUFA GROUP

My steel:

Although the performance of factory and social warehouses of most varieties steel is dominated by growth at present, this performance is mainly caused by the inconvenience of transportation during holidays and epidemic prevention and control. Therefore, after the normal commencement next week, the overall inventory is expected to return to the downward trend. On the other hand, in the near future, the control of raw material prices will continue to be strengthened, and the overall supply increment does not rule out the possibility of continuous increase. In addition, while the market has strong expectations for demand, it is also necessary to guard against the inhibition of the increase of resource arrival on the spot price. It is comprehensively estimated that the domestic steel market price may fluctuate at a high level this week (May 9-May 13, 2022).

 

Han Weidong, deputy general manager of Youfa Group:

judging from the output of key iron and steel enterprises in late April released by China Iron and Steel Association, the national average daily output of crude steel in April was about 3 million tons, which was in line with expectations. However, in view of the current insufficient construction and the slow recovery of real estate, the market was under a little pressure. Time rubbed everyone a little anxious, resulting in certain fluctuations, and found a balance in fluctuations: the balance between supply and demand, the balance between reality and expectation, the balance of upstream and downstream profits in the industry... These will happen, but it takes time! When the market price exceeds last year's average price, we tell you not to be too optimistic but to prevent risks. When the market has fallen sharply, we also want to tell you not to be too pessimistic. When there is no unilateral trend market and the market fluctuates sharply, we need to prevent risks at the top and seize some opportunities at the bottom, so that our annual average purchase price is lower than the average price and the average sales price is higher than the average price, which is very good. This year, national policies have been issued continuously, investment has increased, and the real estate policy has been formed at the end of the fourth quarter of last year, which has gradually improved month on month. In terms of price, it is hundreds of yuan lower than last year's average price, and the steel plant has lost money, which will curb the growth of steel output. We also see that the world is predicting and worried about inflation, and no institution is worried about the sharp decline. This is a big environment. What we need to do now is to wait for the market to warm up in normal operation. When we are upset, we will have a cup of good tea and listen to music. Everything will be fine!