Inventories Fell Month-on-month, And Market Confidence Was Frustrated

Statistics show that in this period (May 6-May 12), the social inventory of major steel products in the country was 15.5415 million tons, a decrease of 364,000 tons compared with the previous period and a decrease of 951,900 tons compared with the same period last month; the rebar inventory was 8.6117 million tons, a decrease of 377,900 tons compared with the previous period.

The total inventory of the five major varieties in this period is 22.5474 million tons, a decrease of 344,700 tons compared with the previous period. In terms of supply, the supply of the five major steel varieties rose slightly this week. Under the background of low profits, the willingness of steel mills to increase production is low. It is expected that short-term steel production will maintain the current level. In terms of demand, the consumption of the five major steel varieties rebounded sharply this week, mainly due to the increased speculative sentiment of traders buying at low prices in the terminal market after the holiday and the drop in spot prices. In terms of inventory, the decline in inventory after the holiday is expected. Considering that the frequency of precipitation in the south may increase or affect terminal construction, it is expected that the speed of inventory depletion may remain flat.

At present, the market's expectations for the recovery of terminal demand are still difficult to fulfill, and the market confidence has been significantly frustrated. The prices of various types of steel in this period generally fell. At present, the recovery time of terminal demand is still unclear, and it is difficult to judge the absolute trend of short-term steel prices. However, considering that the current profit of steelmaking is still at an absolute low level, it is expected that the steel price will strengthen relative to the charge price in the later period.