Trend

Steel House： The current supply and demand relationship in the domestic steel market tends to improve, mainly due to the increased production reduction of steel mills, the operating rate of domestic blast furnaces has dropped rapidly for two consecutive weeks, the operating rate of electric furnaces has continued to decline slightly, and the decline in inventory of steel mills has accelerated; Temporary, steel trading volume fell again month-on-month. Recently, favorable factors have gradually increased. First, the adjustment of the national epidemic prevention and control policy will generally benefit downstream demand. The Standing Committee of the Politburo is emphasizing three unwavering principles: unswervingly adhering to the supremacy of the people and life, unswervingly implementing the general strategy of "foreign defense import, internal defense rebound", and unswervingly implementing the general policy of "dynamic clearing" ——At the same time, it is clearly stated that it is necessary to increase the intensity of one-size-fits-all and layer-by-layer rectification. The joint defense and joint control mechanism deploys 20 measures to further optimize the prevention and control work, and optimizes and adjusts close contact management measures, sub-close contact, and risk zone division. It is conducive to boosting market confidence and weakening the impact of the epidemic on the economy. Second, the production reduction of steel mills has been significantly increased, and the reduction of steel inventory has been accelerated for three consecutive weeks, and the pressure on resource supply is generally not large. We believe that with the optimization of epidemic control policies and the strengthening of steel mills' production restrictions, it is expected that domestic steel market prices will continue to rebound this week