Time of issue: 2021-09-10

This week (September 3-September 9), the country’s main steel social stocks were 14.283,400 tons, a decrease of 298,100 tons from last week, and a decrease of 699,500 tons from the same period last month; rebar stocks were 7,505,200 tons, compared with last week. A reduction of 257,000 tons.

The total inventory of five major varieties this week was 20.24 million tons, a decrease of 553,100 tons from last week. In terms of supply, the supply of steel continued to diverge this week, with building materials falling by 50,300, and steel plates by 40,600 from the previous month; the current output leveling control policy is overweight, and it is expected that the supply will continue to be tight in the future. In terms of demand, the real estate construction demand may be released during the peak season of “Golden 9”; at the same time, the current manufacturing investment has an upward repair trend, which may provide effective power support for the demand for panels. In terms of inventory, the pace of the forward movement of factories and warehouses has accelerated in this period. While social warehouses are receiving forward resources from factories and warehouses, the speed of their own decentralization has also been accelerated by the improvement of market trading atmosphere. The core logic of the current market has changed. For demand-led reasons, it is expected that the rate of destocking in the later period may continue to increase.

In this period, the prices of various black products continued to diverge, and the prices of bi-coke rose sharply, the prices of various steel products were strong, and the price of iron ore fluctuated weakly. Since September, many steel mills have announced their maintenance plans. At the same time, the terminal demand affected by the epidemic, floods and other factors in the early stage is expected to start in the peak season of “Golden 9”. Therefore, steel prices are expected to run strongly in the later period.